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Stag Industrial (STAG) Gains But Lags Market: What You Should Know

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Stag Industrial (STAG - Free Report) closed the most recent trading day at $39.65, moving +0.18% from the previous trading session. This move lagged the S&P 500's daily gain of 2.14%. Elsewhere, the Dow gained 1.82%, while the tech-heavy Nasdaq lost 0.01%.

Prior to today's trading, shares of the industrial real estate investment trust had lost 1.37% over the past month. This has was narrower than the Finance sector's loss of 5.3% and the S&P 500's loss of 5.01% in that time.

Wall Street will be looking for positivity from Stag Industrial as it approaches its next earnings report date. The company is expected to report EPS of $0.52, up 6.12% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $156.23 million, up 16.59% from the year-ago period.

STAG's full-year Zacks Consensus Estimates are calling for earnings of $2.16 per share and revenue of $655.14 million. These results would represent year-over-year changes of +4.85% and +16.54%, respectively.

Investors should also note any recent changes to analyst estimates for Stag Industrial. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. Stag Industrial currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Stag Industrial is holding a Forward P/E ratio of 18.32. For comparison, its industry has an average Forward P/E of 14.85, which means Stag Industrial is trading at a premium to the group.

Investors should also note that STAG has a PEG ratio of 3.53 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.7 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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