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Innovative Industrial Properties (IIPR) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Innovative Industrial Properties (IIPR - Free Report) closed at $239.05, marking a -1.56% move from the previous day. This move lagged the S&P 500's daily gain of 0.75%.

Prior to today's trading, shares of the company had gained 3.13% over the past month. This has outpaced the Finance sector's gain of 1.42% and the S&P 500's loss of 0.05% in that time.

Wall Street will be looking for positivity from IIPR as it approaches its next earnings report date. The company is expected to report EPS of $1.72, up 34.38% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $52.8 million, up 53.8% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.71 per share and revenue of $200.8 million, which would represent changes of +34.2% and +71.78%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for IIPR. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.23% lower. IIPR is currently a Zacks Rank #3 (Hold).

Looking at its valuation, IIPR is holding a Forward P/E ratio of 36.19. For comparison, its industry has an average Forward P/E of 18.67, which means IIPR is trading at a premium to the group.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% 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.

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


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