Back to top

Image: Bigstock

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

Read MoreHide Full Article

The most recent trading session ended with Realty Income Corp. (O - Free Report) standing at $49.42, reflecting a -0.98% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.85%. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 0.96%.

Shares of the real estate investment trust have depreciated by 7.23% over the course of the past month, underperforming the Finance sector's loss of 4.96% and the S&P 500's loss of 3.02%.

Investors will be eagerly watching for the performance of Realty Income Corp. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 6, 2023. It is anticipated that the company will report an EPS of $1, marking a 2.04% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.04 billion, indicating a 23.72% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.01 per share and revenue of $4.06 billion, which would represent changes of +2.3% and +21.37%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Realty Income Corp. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Right now, Realty Income Corp. possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Realty Income Corp. is at present trading with a Forward P/E ratio of 12.45. This expresses a premium compared to the average Forward P/E of 11.26 of its industry.

Also, we should mention that O has a PEG ratio of 2.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 2.48 based on yesterday's closing prices.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Realty Income Corporation (O) - free report >>

Published in