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Prologis (PLD) Stock Sinks As Market Gains: What You Should Know

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Prologis (PLD - Free Report) closed the most recent trading day at $110.36, moving -1.28% from the previous trading session. This change lagged the S&P 500's daily gain of 0.22%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.22%.

Coming into today, shares of the industrial real estate developer had lost 7.82% in the past month. In that same time, the Finance sector lost 9.02%, while the S&P 500 lost 10.02%.

Investors will be hoping for strength from Prologis as it approaches its next earnings release. On that day, Prologis is projected to report earnings of $1.12 per share, which would represent 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.15 per share and revenue of $4.52 billion. These totals would mark changes of +24.1% and +9%, respectively, from last year.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 remained stagnant. Prologis is currently a Zacks Rank #2 (Buy).

Digging into valuation, Prologis currently has a Forward P/E ratio of 21.42. For comparison, its industry has an average Forward P/E of 12.25, which means Prologis is trading at a premium to the group.

We can also see that PLD currently has a PEG ratio of 2.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PLD's industry had an average PEG ratio of 2.19 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 148, putting it in the bottom 42% 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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