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Why Realty Income Corp. (O) Dipped More Than Broader Market Today

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Realty Income Corp. (O - Free Report) closed the latest trading day at $50.28, indicating a -1.32% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.63% for the day. Meanwhile, the Dow experienced a drop of 0.51%, and the technology-dominated Nasdaq saw a decrease of 0.63%.

Shares of the real estate investment trust witnessed a loss of 7.46% over the previous month, trailing the performance of the Finance sector with its loss of 2.46% and the S&P 500's loss of 2.35%.

The investment community will be closely monitoring the performance of Realty Income Corp. in its forthcoming earnings report. The company is scheduled to release its earnings on November 6, 2023. The company's upcoming EPS is projected at $1, signifying a 2.04% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.03 billion, indicating a 23.52% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.01 per share and a revenue of $4.05 billion, indicating changes of +2.3% and +21.25%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Realty Income Corp. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. Realty Income Corp. is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Realty Income Corp. is presently trading at a Forward P/E ratio of 12.71. This represents a premium compared to its industry's average Forward P/E of 11.35.

Meanwhile, O's PEG ratio is currently 2.54. 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 average PEG ratio for the REIT and Equity Trust - Retail industry stood at 2.53 at the close of the market yesterday.

The REIT and Equity Trust - Retail industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 42, placing it within the top 17% of over 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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