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Here's Why Prologis (PLD) Gained But Lagged the Market Today

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Prologis (PLD - Free Report) closed the latest trading day at $109.02, indicating a +0.25% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.58%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.81%.

The industrial real estate developer's shares have seen an increase of 3.25% over the last month, surpassing the Finance sector's gain of 2.5% and falling behind the S&P 500's gain of 4.61%.

Analysts and investors alike will be keeping a close eye on the performance of Prologis in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.41, marking a 5.22% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2 billion, indicating a 7.88% growth compared to the corresponding quarter of the prior year.

PLD's full-year Zacks Consensus Estimates are calling for earnings of $5.71 per share and revenue of $8.09 billion. These results would represent year-over-year changes of +2.7% and +7.65%, respectively.

Any recent changes to analyst estimates for Prologis should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.22% lower. At present, Prologis boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Prologis is currently trading at a Forward P/E ratio of 19.06. This expresses a premium compared to the average Forward P/E of 11.01 of its industry.

Also, we should mention that PLD has a PEG ratio of 2.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.41 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 37% echelons 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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