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Here's Why Innovative Industrial Properties (IIPR) Gained But Lagged the Market Today

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In the latest trading session, Innovative Industrial Properties (IIPR - Free Report) closed at $95.84, marking a +1.1% move from the previous day. This change lagged the S&P 500's 1.41% gain on the day. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 2.2%.

The company's shares have seen an increase of 7.87% over the last month, surpassing the Finance sector's gain of 5.34% and the S&P 500's gain of 2.9%.

The upcoming earnings release of Innovative Industrial Properties will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.27, reflecting a 7.08% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $77.25 million, indicating a 9.64% upward movement from the same quarter last year.

Investors might also notice recent changes to analyst estimates for Innovative Industrial Properties. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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 no change in the Zacks Consensus EPS estimate. Innovative Industrial Properties presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Innovative Industrial Properties has a Forward P/E ratio of 10.35 right now. This expresses a discount compared to the average Forward P/E of 11.04 of its industry.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 34% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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