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Simon Property (SPG) Gains As Market Dips: What You Should Know

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In the latest trading session, Simon Property (SPG - Free Report) closed at $118.10, marking a +0.16% move from the previous day. This move outpaced the S&P 500's daily loss of 0.41%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 6.67%.

Heading into today, shares of the shopping mall real estate investment trust had gained 1.86% over the past month, outpacing the Finance sector's loss of 3.99% and the S&P 500's loss of 4.4% in that time.

Simon Property will be looking to display strength as it nears its next earnings release. In that report, analysts expect Simon Property to post earnings of $3.14 per share. This would mark year-over-year growth of 1.62%. Meanwhile, our latest consensus estimate is calling for revenue of $1.37 billion, up 3.05% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.68 per share and revenue of $5.24 billion, which would represent changes of -2.18% and +2.44%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Simon Property. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Simon Property is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Simon Property's current valuation metrics, including its Forward P/E ratio of 10.09. This valuation marks a discount compared to its industry's average Forward P/E of 13.26.

It is also worth noting that SPG currently has a PEG ratio of 2.66. 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 - Retail was holding an average PEG ratio of 2.17 at yesterday's closing price.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% 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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