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

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In the latest trading session, Prologis (PLD - Free Report) closed at $121.43, marking a +1.17% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.

Prior to today's trading, shares of the industrial real estate developer had lost 6.13% over the past month. This has was narrower than the Finance sector's loss of 7.94% and the S&P 500's loss of 6.79% in that time.

Wall Street will be looking for positivity from Prologis as it approaches its next earnings report date. This is expected to be July 18, 2022. The company is expected to report EPS of $1.12, up 10.89% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.1 billion, up 8.84% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.16 per share and revenue of $4.52 billion. These totals would mark changes of +24.34% and +9%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Prologis. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 0.11% higher within the past month. Prologis is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Prologis is currently trading at a Forward P/E ratio of 23.28. For comparison, its industry has an average Forward P/E of 12.95, which means Prologis is trading at a premium to the group.

Meanwhile, PLD's PEG ratio is currently 2.38. 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 2.39 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 91, putting it in the top 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.

To follow PLD in the coming trading sessions, be sure to utilize Zacks.com.


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