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Prologis (PLD) Exceeds Market Returns: Some Facts to Consider

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In the latest market close, Prologis (PLD - Free Report) reached $110.33, with a +0.79% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.52%. On the other hand, the Dow registered a gain of 0.4%, and the technology-centric Nasdaq increased by 0.58%.

The industrial real estate developer's stock has dropped by 10.4% in the past month, falling short of the Finance sector's loss of 3.1% and the S&P 500's loss of 2.61%.

Market participants will be closely following the financial results of Prologis in its upcoming release. The company plans to announce its earnings on October 17, 2023. It is anticipated that the company will report an EPS of $1.26, marking a 27.17% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.71 billion, showing a 48.36% escalation compared to the year-ago quarter.

PLD's full-year Zacks Consensus Estimates are calling for earnings of $5.59 per share and revenue of $6.74 billion. These results would represent year-over-year changes of +8.33% and +37.09%, respectively.

Any recent changes to analyst estimates for Prologis should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Prologis is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Prologis is currently trading at a Forward P/E ratio of 19.59. For comparison, its industry has an average Forward P/E of 10.05, which means Prologis is trading at a premium to the group.

One should further note that PLD currently holds a PEG ratio of 2.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the REIT and Equity Trust - Other industry stood at 2.18 at the close of the market yesterday.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 173, finds itself in the bottom 32% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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