Back to top

Image: Bigstock

Gladstone Commercial (GOOD) Advances But Underperforms Market: Key Facts

Read MoreHide Full Article

Gladstone Commercial (GOOD - Free Report) closed the most recent trading day at $11.44, moving +1.15% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.56%. On the other hand, the Dow registered a gain of 1.29%, and the technology-centric Nasdaq increased by 2.21%.

Shares of the real estate investment trust have depreciated by 13.33% over the course of the past month, underperforming the Finance sector's loss of 2.31%, and the S&P 500's gain of 0.41%.

The upcoming earnings release of Gladstone Commercial will be of great interest to investors. The company is predicted to post an EPS of $0.4, indicating a 5.26% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $38.8 million, down 1.12% from the prior-year quarter.

GOOD's full-year Zacks Consensus Estimates are calling for earnings of $1.49 per share and revenue of $154.4 million. These results would represent year-over-year changes of +4.93% and +3.36%, respectively.

Investors might also notice recent changes to analyst estimates for Gladstone Commercial. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Gladstone Commercial is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, Gladstone Commercial is holding a Forward P/E ratio of 7.57. This expresses a discount compared to the average Forward P/E of 10.85 of its industry.

It is also worth noting that GOOD currently has a PEG ratio of 1.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.64 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


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


Gladstone Commercial Corporation (GOOD) - free report >>

Published in