Back to top

Image: Bigstock

Realty Income Corp. (O) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Realty Income Corp. (O - Free Report) closed at $57.35, marking a -1.17% move from the previous day. This change lagged the S&P 500's 0.75% loss on the day. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the real estate investment trust had lost 13.12% in the past month. In that same time, the Finance sector lost 7.98%, while the S&P 500 lost 8.4%.

Realty Income Corp. will be looking to display strength as it nears its next earnings release, which is expected to be November 2, 2022. On that day, Realty Income Corp. is projected to report earnings of $0.98 per share, which would represent year-over-year growth of 7.69%. Our most recent consensus estimate is calling for quarterly revenue of $829.93 million, up 68.73% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.92 per share and revenue of $3.31 billion. These totals would mark changes of +9.19% and +58.61%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Realty Income Corp.Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. Realty Income Corp. is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Realty Income Corp. has a Forward P/E ratio of 14.82 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.76.

It is also worth noting that O currently has a PEG ratio of 3.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The REIT and Equity Trust - Retail industry currently had an average PEG ratio of 1.77 as of yesterday's close.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow O in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Realty Income Corporation (O) - free report >>

Published in