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Simon Property (SPG) Gains But Lags Market: What You Should Know

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Simon Property (SPG - Free Report) closed at $90.98 in the latest trading session, marking a +1.37% move from the prior day. The stock lagged the S&P 500's daily gain of 2.59%. At the same time, the Dow added 2.66%, and the tech-heavy Nasdaq gained 0.07%.

Prior to today's trading, shares of the shopping mall real estate investment trust had lost 10.72% over the past month. This has lagged the Finance sector's loss of 9.14% and the S&P 500's loss of 9.22% in that time.

Wall Street will be looking for positivity from Simon Property as it approaches its next earnings report date. In that report, analysts expect Simon Property to post earnings of $2.91 per share. This would mark a year-over-year decline of 7.03%. Meanwhile, our latest consensus estimate is calling for revenue of $1.34 billion, up 3.43% from the prior-year quarter.

SPG's full-year Zacks Consensus Estimates are calling for earnings of $11.66 per share and revenue of $5.31 billion. These results would represent year-over-year changes of -2.35% and +3.8%, respectively.

Any recent changes to analyst estimates for Simon Property should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Simon Property is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Simon Property is holding a Forward P/E ratio of 7.7. This valuation marks a discount compared to its industry's average Forward P/E of 11.8.

It is also worth noting that SPG currently has a PEG ratio of 1.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SPG's industry had an average PEG ratio of 1.74 as of yesterday's close.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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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