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

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Simon Property (SPG - Free Report) closed at $125.57 in the latest trading session, marking a -0.33% move from the prior day. This move lagged the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 1.1%.

Coming into today, shares of the shopping mall real estate investment trust had gained 6.58% in the past month. In that same time, the Finance sector gained 3.81%, while the S&P 500 lost 0.01%.

Wall Street will be looking for positivity from Simon Property as it approaches its next earnings report date. The company is expected to report EPS of $3.14, up 1.62% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.37 billion, up 3.05% from the year-ago period.

Any recent changes to analyst estimates for Simon Property should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.22% higher. Simon Property is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Simon Property's current valuation metrics, including its Forward P/E ratio of 10.4. Its industry sports an average Forward P/E of 13.56, so we one might conclude that Simon Property is trading at a discount comparatively.

Also, we should mention that SPG has a PEG ratio of 2.74. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 2.34 based on yesterday's closing prices.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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