In the latest trading session, Realty Income Corp. (O - Free Report) closed at $63.06, marking a -0.16% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.36%. Elsewhere, the Dow lost 0.65%, while the tech-heavy Nasdaq added 0.15%.
Investors will be hoping for strength from O as it approaches its next earnings release. The company is expected to report EPS of $0.80, down 2.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $402.38 million, up 10.11% from the year-ago period.
O's full-year Zacks Consensus Estimates are calling for earnings of $3.36 per share and revenue of $1.64 billion. These results would represent year-over-year changes of +1.2% and +9.96%, respectively.
Any recent changes to analyst estimates for O should also be noted by investors. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. O is currently a Zacks Rank #3 (Hold).
Digging into valuation, O currently has a Forward P/E ratio of 18.82. For comparison, its industry has an average Forward P/E of 11.27, which means O is trading at a premium to the group.
It is also worth noting that O currently has a PEG ratio of 5.93. 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. The REIT and Equity Trust - Retail was holding an average PEG ratio of 5.93 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 199, putting it in the bottom 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.