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Prologis (PLD) Stock Sinks As Market Gains: What You Should Know

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Prologis (PLD - Free Report) closed the most recent trading day at $118.66, moving -1.68% from the previous trading session. This change lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 1.26%.

Heading into today, shares of the industrial real estate developer had lost 0.27% over the past month, lagging the Finance sector's gain of 3.13% and the S&P 500's gain of 4.31% in that time.

Wall Street will be looking for positivity from Prologis as it approaches its next earnings report date. The company is expected to report EPS of $1.68, up 51.35% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.67 billion, up 52.38% from the prior-year quarter.

PLD's full-year Zacks Consensus Estimates are calling for earnings of $5.49 per share and revenue of $6.73 billion. These results would represent year-over-year changes of +6.4% and +36.88%, respectively.

Investors should also note any recent changes to analyst estimates for Prologis. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 remained stagnant within the past month. Prologis currently has a Zacks Rank of #3 (Hold).

Investors should also note Prologis's current valuation metrics, including its Forward P/E ratio of 21.99. Its industry sports an average Forward P/E of 11.38, so we one might conclude that Prologis is trading at a premium comparatively.

Meanwhile, PLD's PEG ratio is currently 2.88. 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 industry currently had an average PEG ratio of 2.03 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 179, which puts it in the bottom 29% 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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