Back to top

Image: Bigstock

Prologis (PLD) Laps the Stock Market: Here's Why

Read MoreHide Full Article

The latest trading session saw Prologis (PLD - Free Report) ending at $111.17, denoting a +0.88% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.26% for the day. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 0.35%.

Heading into today, shares of the industrial real estate developer had gained 2.52% over the past month, outpacing the Finance sector's gain of 0.75% and lagging the S&P 500's gain of 3.25% in that time.

Market participants will be closely following the financial results of Prologis in its upcoming release. In that report, analysts expect Prologis to post earnings of $1.34 per share. This would mark a year-over-year decline of 26.78%. Our most recent consensus estimate is calling for quarterly revenue of $1.86 billion, up 12.48% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.42 per share and a revenue of $7.53 billion, indicating changes of -3.39% and +10.39%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Prologis. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Prologis currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Prologis is currently trading at a Forward P/E ratio of 20.32. This denotes a premium relative to the industry's average Forward P/E of 11.46.

It's also important to note that PLD currently trades at a PEG ratio of 2.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.13 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 33% 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 to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

See More Zacks Research for These Tickers

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

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

Published in