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Simon Property (SPG) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Simon Property (SPG - Free Report) closed at $120.24, marking a +1.37% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.16%.

Prior to today's trading, shares of the shopping mall real estate investment trust had gained 0.93% over the past month. This has outpaced the Finance sector's loss of 1.41% and the S&P 500's gain of 0.09% in that time.

Investors will be hoping for strength from Simon Property as it approaches its next earnings release. In that report, analysts expect Simon Property to post earnings of $3.14 per share. This would mark year-over-year growth of 1.62%. Meanwhile, our latest consensus estimate is calling for revenue of $1.4 billion, up 5.62% from the prior-year quarter.

SPG's full-year Zacks Consensus Estimates are calling for earnings of $11.69 per share and revenue of $5.3 billion. These results would represent year-over-year changes of -2.09% and +3.66%, respectively.

Any recent changes to analyst estimates for Simon Property should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.26% lower within the past month. Simon Property currently has a Zacks Rank of #3 (Hold).

Investors should also note Simon Property's current valuation metrics, including its Forward P/E ratio of 10.15. For comparison, its industry has an average Forward P/E of 13.67, which means Simon Property is trading at a discount to the group.

We can also see that SPG currently has a PEG ratio of 2.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The REIT and Equity Trust - Retail was holding an average PEG ratio of 2.25 at yesterday's closing price.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% 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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