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Preferred Apartment Communities (APTS) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Preferred Apartment Communities (APTS - Free Report) closed at $16.80, marking a -1% move from the previous day. This change lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 0.16%.

Coming into today, shares of the real estate investment trust had gained 3.04% in the past month. In that same time, the Finance sector lost 0.17%, while the S&P 500 lost 5.39%.

Investors will be hoping for strength from Preferred Apartment Communities as it approaches its next earnings release. On that day, Preferred Apartment Communities is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 25.81%. Meanwhile, our latest consensus estimate is calling for revenue of $102.49 million, down 15.38% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Preferred Apartment Communities. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Preferred Apartment Communities is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Preferred Apartment Communities has a Forward P/E ratio of 16.48 right now. This valuation marks a discount compared to its industry's average Forward P/E of 23.31.

Meanwhile, APTS's PEG ratio is currently 2.35. 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. REIT and Equity Trust - Residential stocks are, on average, holding a PEG ratio of 4.22 based on yesterday's closing prices.

The REIT and Equity Trust - Residential industry is part of the Finance sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% 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.

To follow APTS in the coming trading sessions, be sure to utilize Zacks.com.


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