Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Prologis (PLD - Free Report) closed at $103.93, marking a +1.61% move from the previous day. This move lagged the S&P 500's daily gain of 1.97%. Meanwhile, the Dow gained 1.88%, and the Nasdaq, a tech-heavy index, added 0.25%.

Prior to today's trading, shares of the industrial real estate developer had lost 18.6% over the past month. This has lagged the Finance sector's loss of 9.76% and the S&P 500's loss of 9.93% 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 October 19, 2022. The company is expected to report EPS of $1.76, up 69.23% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.13 billion, up 8.86% from the year-ago period.

PLD's full-year Zacks Consensus Estimates are calling for earnings of $5.17 per share and revenue of $4.46 billion. These results would represent year-over-year changes of +24.58% and +7.58%, respectively.

Investors should also note any 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. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Prologis is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Prologis is holding a Forward P/E ratio of 19.77. For comparison, its industry has an average Forward P/E of 11.45, which means Prologis is trading at a premium to the group.

We can also see that PLD currently has a PEG ratio of 2.2. 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. The REIT and Equity Trust - Other was holding an average PEG ratio of 1.9 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 88, which puts it in the top 35% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Prologis, Inc. (PLD) - free report >>

Published in