In the latest trading session, Realty Income Corp. (O - Free Report) closed at $72.70, marking a -0.51% move from the previous day. This change lagged the S&P 500's daily gain of 0.41%. At the same time, the Dow added 0.39%, and the tech-heavy Nasdaq gained 0.57%.
Coming into today, shares of the real estate investment trust had gained 5.49% in the past month. In that same time, the Finance sector lost 0.77%, while the S&P 500 gained 0.1%.
Investors will be hoping for strength from O as it approaches its next earnings release. In that report, analysts expect O to post earnings of $0.81 per share. This would mark year-over-year growth of 1.25%. Our most recent consensus estimate is calling for quarterly revenue of $360.87 million, up 9.72% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.30 per share and revenue of $1.47 billion, which would represent changes of +3.45% and +10.38%, respectively, from the prior year.
Any recent changes to analyst estimates for O should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. O is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, O currently has a Forward P/E ratio of 22.15. This represents a premium compared to its industry's average Forward P/E of 14.11.
Investors should also note that O has a PEG ratio of 4.96 right now. 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. The REIT and Equity Trust - Retail industry currently had an average PEG ratio of 3.18 as of yesterday's close.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.