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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 $413.17, marking a +0.87% move from the previous day. This change lagged the S&P 500's 1.61% gain on the day. Meanwhile, the Dow gained 1.45%, and the Nasdaq, a tech-heavy index, added 0.05%.

Heading into today, shares of the self-storage facility real estate investment trust had gained 11.44% over the past month, outpacing the Finance sector's loss of 3.25% and the S&P 500's loss of 1.42% in that time.

Wall Street will be looking for positivity from Public Storage as it approaches its next earnings report date. This is expected to be May 3, 2022. In that report, analysts expect Public Storage to post earnings of $3.59 per share. This would mark year-over-year growth of 27.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $965.73 million, up 25.87% from the year-ago period.

PSA's full-year Zacks Consensus Estimates are calling for earnings of $15.53 per share and revenue of $4.05 billion. These results would represent year-over-year changes of +20.11% and +18.51%, respectively.

It is also important to note the recent changes to analyst estimates for Public Storage. Recent revisions tend to reflect the latest near-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. 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. The Zacks Consensus EPS estimate has moved 0.67% higher within the past month. Public Storage is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that Public Storage has a Forward P/E ratio of 26.38 right now. This represents a premium compared to its industry's average Forward P/E of 15.1.

We can also see that PSA currently has a PEG ratio of 4.2. 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 2.86 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 95, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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