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Prologis (PLD) Gains But Lags Market: What You Should Know

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Prologis (PLD - Free Report) closed the most recent trading day at $127.87, moving +0.23% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 0.14%.

Coming into today, shares of the industrial real estate developer had lost 9.44% in the past month. In that same time, the Finance sector lost 0.4%, while the S&P 500 lost 1.38%.

Investors will be hoping for strength from Prologis as it approaches its next earnings release. In that report, analysts expect Prologis to post earnings of $1.12 per share. This would mark year-over-year growth of 10.89%. Meanwhile, our latest consensus estimate is calling for revenue of $1.1 billion, up 8.84% from the prior-year quarter.

PLD's full-year Zacks Consensus Estimates are calling for earnings of $5.15 per share and revenue of $4.52 billion. These results would represent year-over-year changes of +24.1% and +9%, respectively.

It is also important to note the recent changes to analyst estimates for Prologis. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Prologis is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Prologis's current valuation metrics, including its Forward P/E ratio of 24.77. For comparison, its industry has an average Forward P/E of 14.18, which means Prologis is trading at a premium to the group.

Meanwhile, PLD's PEG ratio is currently 2.53. 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 2.52 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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