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Gladstone Commercial (GOOD) Stock Sinks As Market Gains: Here's Why

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Gladstone Commercial (GOOD - Free Report) ended the recent trading session at $12.88, demonstrating a -1.15% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.49%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.72%.

Coming into today, shares of the real estate investment trust had lost 0.53% in the past month. In that same time, the Finance sector gained 3.48%, while the S&P 500 gained 2.99%.

Investors will be eagerly watching for the performance of Gladstone Commercial in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.4, reflecting a 5.26% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $38.8 million, down 1.12% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.49 per share and a revenue of $154.4 million, signifying shifts of +4.93% and +3.36%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Gladstone Commercial. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Gladstone Commercial presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Gladstone Commercial is at present trading with a Forward P/E ratio of 8.73. This indicates a discount in contrast to its industry's Forward P/E of 11.76.

Meanwhile, GOOD's PEG ratio is currently 1.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the REIT and Equity Trust - Other industry held an average PEG ratio of 2.58.

The REIT and Equity Trust - Other industry is part of the Finance sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 40% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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