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Simon Property (SPG) Exceeds Market Returns: Some Facts to Consider

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In the latest market close, Simon Property (SPG - Free Report) reached $108.33, with a +1.21% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 1.06%. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 1.2%.

Coming into today, shares of the shopping mall real estate investment trust had lost 8.06% in the past month. In that same time, the Finance sector lost 4.1%, while the S&P 500 lost 3%.

Investors will be eagerly watching for the performance of Simon Property in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 30, 2023. The company is expected to report EPS of $2.98, up 0.34% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.37 billion, indicating a 3.95% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.91 per share and a revenue of $5.52 billion, signifying shifts of +0.34% and +4.33%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Simon Property. Recent revisions tend to reflect the latest 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% lower. At present, Simon Property boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Simon Property is currently being traded at a Forward P/E ratio of 8.99. This represents a discount compared to its industry's average Forward P/E of 10.98.

It's also important to note that SPG currently trades at a PEG ratio of 5.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the REIT and Equity Trust - Retail industry was having an average PEG ratio of 2.5.

The REIT and Equity Trust - Retail industry is part of the Finance sector. With its current Zacks Industry Rank of 33, this industry ranks in the top 14% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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