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Realty Income Corp. (O) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest close session, Realty Income Corp. (O - Free Report) was down 1.4% at $60.07. The stock's performance was behind the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 0.17%.

The real estate investment trust's stock has climbed by 6.82% in the past month, exceeding the Finance sector's loss of 0.23% and the S&P 500's gain of 0.78%.

The investment community will be closely monitoring the performance of Realty Income Corp. in its forthcoming earnings report. The company is scheduled to release its earnings on February 24, 2026. The company is expected to report EPS of $1.08, up 2.86% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.46 billion, reflecting a 9.08% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.27 per share and revenue of $5.73 billion, which would represent changes of +1.91% and 0%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Realty Income Corp. 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 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% upward. At present, Realty Income Corp. boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Realty Income Corp. is currently exchanging hands at a Forward P/E ratio of 13.77. This signifies a premium in comparison to the average Forward P/E of 13.68 for its industry.

It's also important to note that O currently trades at a PEG ratio of 3.91. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The REIT and Equity Trust - Retail was holding an average PEG ratio of 2.66 at yesterday's closing price.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 92, putting it in the top 38% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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