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Realty Income Corp. (O) Gains As Market Dips: What You Should Know

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Realty Income Corp. (O - Free Report) closed at $70.67 in the latest trading session, marking a +0.14% move from the prior day. This move outpaced the S&P 500's daily loss of 1.26%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq lost 0.44%.

Heading into today, shares of the real estate investment trust had gained 9.12% over the past month, outpacing the Finance sector's gain of 3.84% and the S&P 500's gain of 6.07% in that time.

Investors will be hoping for strength from Realty Income Corp. as it approaches its next earnings release. On that day, Realty Income Corp. is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 12.79%. Meanwhile, our latest consensus estimate is calling for revenue of $744.67 million, up 68.17% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.95 per share and revenue of $3.13 billion, which would represent changes of +10.03% and +49.96%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Realty Income Corp.These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.

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 0.36% higher within the past month. Realty Income Corp. is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, Realty Income Corp. currently has a Forward P/E ratio of 17.89. This valuation marks a premium compared to its industry's average Forward P/E of 16.06.

Meanwhile, O's PEG ratio is currently 3.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. O's industry had an average PEG ratio of 2.21 as of yesterday's close.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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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