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Simon Property (SPG) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Simon Property (SPG - Free Report) closed at $110.96, marking a +0.91% move from the previous day. This change outpaced the S&P 500's 0.69% gain on the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq lost 8.94%.

Coming into today, shares of the shopping mall real estate investment trust had gained 2.83% in the past month. In that same time, the Finance sector gained 5.12%, while the S&P 500 gained 5.41%.

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 $2.92 per share. This would mark a year-over-year decline of 1.35%. Our most recent consensus estimate is calling for quarterly revenue of $1.35 billion, up 5.84% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.02 per share and revenue of $5.51 billion. These totals would mark changes of +1.26% and +4.16%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Simon Property. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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 0.04% lower within the past month. Simon Property currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Simon Property currently has a Forward P/E ratio of 9.15. This represents a discount compared to its industry's average Forward P/E of 12.4.

Meanwhile, SPG's PEG ratio is currently 2.65. 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 - Retail industry currently had an average PEG ratio of 2.65 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 116, which puts it in the top 47% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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