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Public Storage (PSA) Stock Sinks As Market Gains: What You Should Know

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Public Storage (PSA - Free Report) closed the most recent trading day at $362.44, moving -0.09% from the previous trading session. This change lagged the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 0.1%.

Prior to today's trading, shares of the self-storage facility real estate investment trust had gained 0.81% over the past month. This has outpaced the Finance sector's loss of 2.04% and the S&P 500's loss of 4.03% in that time.

Public Storage will be looking to display strength as it nears its next earnings release, which is expected to be February 22, 2022. The company is expected to report EPS of $3.44, up 17.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $913.05 million, up 21.98% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Public Storage. 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, 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 has moved 0.55% higher. Public Storage is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that Public Storage has a Forward P/E ratio of 24.97 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.67.

Meanwhile, PSA's PEG ratio is currently 3.01. 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. PSA's industry had an average PEG ratio of 2.57 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 168, 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.

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


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