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Public Storage (PSA) Gains But Lags Market: What You Should Know

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In the latest trading session, Public Storage (PSA - Free Report) closed at $370.38, marking a +0.77% move from the previous day. This change lagged the S&P 500's 1.13% gain on the day. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 0.87%.

Heading into today, shares of the self-storage facility real estate investment trust had gained 6.99% over the past month, outpacing the Finance sector's gain of 0.44% and the S&P 500's gain of 2.65% 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%. Meanwhile, our latest consensus estimate is calling for revenue of $958.57 million, up 24.93% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.17 per share and revenue of $3.93 billion. These totals would mark changes of +17.32% and +15.09%, respectively, from last year.

Any recent changes to analyst estimates for Public Storage should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.

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. Within the past 30 days, our consensus EPS projection has moved 6.14% higher. Public Storage is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Public Storage is currently trading at a Forward P/E ratio of 24.23. For comparison, its industry has an average Forward P/E of 15.23, which means Public Storage is trading at a premium to the group.

Investors should also note that PSA has a PEG ratio of 3.96 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. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.78 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 44% 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.

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


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