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Realty Income Corp. (O) Stock Sinks As Market Gains: What You Should Know

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Realty Income Corp. (O - Free Report) closed at $78.68 in the latest trading session, marking a -1.75% move from the prior day. This move lagged the S&P 500's daily gain of 0.17%. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.11%.

Coming into today, shares of the real estate investment trust had gained 6.83% in the past month. In that same time, the Finance sector gained 0.92%, while the S&P 500 gained 2.78%.

Investors will be hoping for strength from O as it approaches its next earnings release, which is expected to be February 19, 2020. The company is expected to report EPS of $0.83, up 5.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $387.29 million, up 13.05% from the year-ago period.

Investors should also note any recent changes to analyst estimates for O. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.07% lower within the past month. O is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, O currently has a Forward P/E ratio of 22.83. This valuation marks a premium compared to its industry's average Forward P/E of 14.28.

We can also see that O currently has a PEG ratio of 6.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. O's industry had an average PEG ratio of 3.88 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 224, putting it in the bottom 13% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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