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

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In the latest trading session, Public Storage (PSA - Free Report) closed at $394.10, marking a -0.61% move from the previous day. This move lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.61%.

Heading into today, shares of the self-storage facility real estate investment trust had gained 5.07% over the past month, outpacing the Finance sector's gain of 4.68% and lagging the S&P 500's gain of 5.64% in that time.

Public Storage will be looking to display strength as it nears its next earnings release. On that day, Public Storage is projected to report earnings of $3.59 per share, which would represent year-over-year growth of 27.3%. Our most recent consensus estimate is calling for quarterly revenue of $970.02 million, up 26.43% from the year-ago period.

PSA's full-year Zacks Consensus Estimates are calling for earnings of $15.43 per share and revenue of $3.98 billion. These results would represent year-over-year changes of +19.33% and +16.61%, respectively.

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. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 1.43% higher. Public Storage is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note Public Storage's current valuation metrics, including its Forward P/E ratio of 25.69. For comparison, its industry has an average Forward P/E of 15.81, which means Public Storage is trading at a premium to the group.

Also, we should mention that PSA has a PEG ratio of 4.19. 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 industry currently had an average PEG ratio of 2.91 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 110, putting 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.

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


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