In the latest trading session, Realty Income Corp. (O - Free Report) closed at $77.89, marking a -1.07% move from the previous day. This change lagged the S&P 500's 1.09% gain on the day. Elsewhere, the Dow gained 1.21%, while the tech-heavy Nasdaq added 1.34%.
Prior to today's trading, shares of the real estate investment trust had gained 5.69% over the past month. This has outpaced the Finance sector's loss of 1.13% and the S&P 500's loss of 1.17% in that time.
O will be looking to display strength as it nears its next earnings release, which is expected to be November 4, 2019. On that day, O is projected to report earnings of $0.83 per share, which would represent year-over-year growth of 2.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $374.87 million, up 10.88% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.29 per share and revenue of $1.48 billion, which would represent changes of +3.13% and +11.49%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for O. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. O currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that O has a Forward P/E ratio of 23.95 right now. Its industry sports an average Forward P/E of 14.22, so we one might conclude that O is trading at a premium comparatively.
It is also worth noting that O currently has a PEG ratio of 6.18. 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 - Retail stocks are, on average, holding a PEG ratio of 3.6 based on yesterday's closing prices.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.