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Preferred Apartment Communities (APTS) Gains But Lags Market: What You Should Know

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Preferred Apartment Communities closed at $24.94 in the latest trading session, marking a +0.16% move from the prior day. The stock lagged the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 0.44%.

Coming into today, shares of the real estate investment trust had lost 1.43% in the past month. In that same time, the Finance sector gained 2.9%, while the S&P 500 gained 4.69%.

Investors will be hoping for strength from Preferred Apartment Communities as it approaches its next earnings release. In that report, analysts expect Preferred Apartment Communities to post earnings of $0.27 per share. This would mark year-over-year growth of 8%. Meanwhile, our latest consensus estimate is calling for revenue of $104.58 million, down 9.61% from the prior-year quarter.

APTS's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $421.05 million. These results would represent year-over-year changes of -4.55% and -6.67%, respectively.

It is also important to note the recent changes to analyst estimates for Preferred Apartment Communities. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 1.94% higher. Preferred Apartment Communities currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Preferred Apartment Communities is holding a Forward P/E ratio of 23.71. For comparison, its industry has an average Forward P/E of 24.65, which means Preferred Apartment Communities is trading at a discount to the group.

It is also worth noting that APTS currently has a PEG ratio of 3.39. 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 - Residential stocks are, on average, holding a PEG ratio of 3.73 based on yesterday's closing prices.

The REIT and Equity Trust - Residential industry is part of the Finance sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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