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

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Public Storage (PSA - Free Report) closed the most recent trading day at $383.36, moving +1.96% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.15%.

Coming into today, shares of the self-storage facility real estate investment trust had gained 3.67% in the past month. In that same time, the Finance sector gained 1.76%, while the S&P 500 gained 3.76%.

Investors will be hoping for strength from Public Storage as it approaches its next earnings release. The company is expected to report EPS of $3.56, up 26.24% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $958.57 million, up 24.93% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $15.28 per share and revenue of $3.93 billion, which would represent changes of +18.17% and +15.09%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Public Storage. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 1.69% higher. Public Storage is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Public Storage is currently trading at a Forward P/E ratio of 24.61. Its industry sports an average Forward P/E of 15.45, so we one might conclude that Public Storage is trading at a premium comparatively.

We can also see that PSA currently has a PEG ratio of 4.02. 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. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.79 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 112, putting it in the top 45% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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