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

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Realty Income Corp. (O - Free Report) closed at $60.90 in the latest trading session, marking a -0.46% move from the prior day. This move lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 0.95%.

Heading into today, shares of the real estate investment trust had gained 3.87% over the past month, lagging the Finance sector's gain of 5.58% and the S&P 500's gain of 4.41% in that time.

Investors will be hoping for strength from O as it approaches its next earnings release, which is expected to be February 22, 2021. The company is expected to report EPS of $0.84, down 2.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $417.54 million, up 5.03% from the year-ago period.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.11% lower. O currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that O has a Forward P/E ratio of 17.49 right now. This valuation marks a premium compared to its industry's average Forward P/E of 13.31.

Also, we should mention that O has a PEG ratio of 5.05. 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 was holding an average PEG ratio of 5.05 at yesterday's closing price.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 22% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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