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Public Storage (PSA) Dips More Than Broader Markets: What You Should Know

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Public Storage (PSA - Free Report) closed the most recent trading day at $360.07, moving -1.62% from the previous trading session. This change lagged the S&P 500's 0.74% loss on the day.

Heading into today, shares of the self-storage facility real estate investment trust had gained 2.18% over the past month, outpacing the Finance sector's loss of 6.55% and the S&P 500's loss of 4.6% in that time.

Wall Street will be looking for positivity from Public Storage as it approaches its next earnings report date. In that report, analysts expect Public Storage to post earnings of $3.56 per share. This would mark year-over-year growth of 26.24%. Our most recent consensus estimate is calling for quarterly revenue of $931.51 million, up 21.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $15.09 per share and revenue of $3.89 billion, which would represent changes of +16.71% and +13.99%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Public Storage. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 6.3% higher. Public Storage is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Public Storage has a Forward P/E ratio of 24.26 right now. This represents a premium compared to its industry's average Forward P/E of 15.07.

It is also worth noting that PSA currently has a PEG ratio of 3.96. 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 - Other industry currently had an average PEG ratio of 2.73 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 155, which puts it in the bottom 39% 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 Zacks.com.


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