Back to top

Image: Bigstock

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

Read MoreHide Full Article

Prologis (PLD - Free Report) closed the most recent trading day at $122.48, moving -0.67% from the previous trading session. This change lagged the S&P 500's 0.14% gain on the day. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.09%.

Prior to today's trading, shares of the industrial real estate developer had gained 0.94% over the past month. This has outpaced the Finance sector's loss of 4.09% and the S&P 500's loss of 1.27% 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 $1.26 per share. This would mark a year-over-year decline of 27.17%. Our most recent consensus estimate is calling for quarterly revenue of $1.72 billion, up 48.96% from the year-ago period.

PLD's full-year Zacks Consensus Estimates are calling for earnings of $5.59 per share and revenue of $6.75 billion. These results would represent year-over-year changes of +8.33% and +37.41%, respectively.

It is also important to note the recent changes to analyst estimates for Prologis. These recent revisions tend to reflect the evolving nature of short-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.

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

Looking at its valuation, Prologis is holding a Forward P/E ratio of 22.07. This represents a premium compared to its industry's average Forward P/E of 10.53.

Also, we should mention that PLD has a PEG ratio of 2.46. 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. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.45 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% 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.

To follow PLD in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Prologis, Inc. (PLD) - free report >>

Published in