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Digital Realty Trust (DLR) Stock Moves -1.37%: What You Should Know

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In the latest trading session, Digital Realty Trust (DLR - Free Report) closed at $90.84, marking a -1.37% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.37%. At the same time, the Dow lost 1.35%, and the tech-heavy Nasdaq lost 0.24%.

Coming into today, shares of the real estate investment trust had lost 17.69% in the past month. In that same time, the Finance sector lost 6.57%, while the S&P 500 lost 6.51%.

Digital Realty Trust will be looking to display strength as it nears its next earnings release, which is expected to be October 26, 2022. On that day, Digital Realty Trust is projected to report earnings of $1.69 per share, which would represent year-over-year growth of 2.42%. Our most recent consensus estimate is calling for quarterly revenue of $1.19 billion, up 5.02% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.80 per share and revenue of $4.69 billion, which would represent changes of +4.13% and +5.92%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Digital Realty Trust. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.39% lower within the past month. Digital Realty Trust currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, Digital Realty Trust is holding a Forward P/E ratio of 13.55. Its industry sports an average Forward P/E of 11.44, so we one might conclude that Digital Realty Trust is trading at a premium comparatively.

Meanwhile, DLR's PEG ratio is currently 1.99. 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 - Other was holding an average PEG ratio of 1.79 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 125, which puts it in the top 50% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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