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Prologis (PLD) Dips More Than Broader Markets: What You Should Know

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Prologis (PLD - Free Report) closed at $117.10 in the latest trading session, marking a -0.59% move from the prior day. This change lagged the S&P 500's 0.09% loss on the day. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.12%.

Heading into today, shares of the industrial real estate developer had gained 10.35% over the past month, outpacing the Finance sector's gain of 6.59% and the S&P 500's gain of 5.55% in that time.

Prologis will be looking to display strength as it nears its next earnings release. In that report, analysts expect Prologis to post earnings of $1.21 per share. This would mark year-over-year growth of 8.04%. Our most recent consensus estimate is calling for quarterly revenue of $1.35 billion, up 25.92% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.12 per share and revenue of $4.7 billion, which would represent changes of +23.37% and +13.34%, respectively, from the prior year.

Any recent changes to analyst estimates for Prologis should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Prologis is currently a Zacks Rank #3 (Hold).

In terms of valuation, Prologis is currently trading at a Forward P/E ratio of 23. This valuation marks a premium compared to its industry's average Forward P/E of 12.37.

Also, we should mention that PLD has a PEG ratio of 2.66. 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 2.01 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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