Back to top

Image: Bigstock

Realty Income Corp. (O) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

In the latest trading session, Realty Income Corp. (O - Free Report) closed at $70.10, marking a +1.33% move from the previous day. This change outpaced the S&P 500's 0.94% loss on the day. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq lost 1.18%.

Prior to today's trading, shares of the real estate investment trust had gained 9.91% over the past month. This has outpaced the Finance sector's gain of 7.5% and the S&P 500's gain of 8.01% in that time.

Investors will be hoping for strength from O as it approaches its next earnings release, which is expected to be February 20, 2019. In that report, analysts expect O to post earnings of $0.75 per share. This would mark a year-over-year decline of 1.32%. Meanwhile, our latest consensus estimate is calling for revenue of $343.16 million, up 10.47% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for O. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. O is currently a Zacks Rank #3 (Hold).

Looking at its valuation, O is holding a Forward P/E ratio of 20.98. This represents a premium compared to its industry's average Forward P/E of 14.19.

Meanwhile, O's PEG ratio is currently 4.51. 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 REIT and Equity Trust - Retail industry currently had an average PEG ratio of 2.87 as of yesterday's close.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% 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.

To follow O in the coming trading sessions, be sure to utilize 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