Back to top

Image: Bigstock

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

Read MoreHide Full Article

Realty Income Corp. (O - Free Report) closed at $70.66 in the latest trading session, marking a +0.26% move from the prior day. This change outpaced the S&P 500's 0.24% gain on the day.

Coming into today, shares of the real estate investment trust had gained 3.45% in the past month. In that same time, the Finance sector gained 0.13%, while the S&P 500 gained 4.09%.

O will be looking to display strength as it nears its next earnings release, which is expected to be August 2, 2021. The company is expected to report EPS of $0.88, up 2.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $447.69 million, up 7.97% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.52 per share and revenue of $1.87 billion. These totals would mark changes of +3.83% and +13.21%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for O. Recent revisions tend to reflect the latest 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 1.52% higher. O currently has a Zacks Rank of #3 (Hold).

Digging into valuation, O currently has a Forward P/E ratio of 20.02. This represents a premium compared to its industry's average Forward P/E of 16.61.

It is also worth noting that O currently has a PEG ratio of 4.98. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The REIT and Equity Trust - Retail industry currently had an average PEG ratio of 3.29 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 64, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on

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