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Realty Income Corp. (O) Gains But Lags Market: What You Should Know

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Realty Income Corp. (O - Free Report) closed at $59.57 in the latest trading session, marking a +0.18% move from the prior day. The stock lagged the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.09%.

O will be looking to display strength as it nears its next earnings release. On that day, O is projected to report earnings of $0.82 per share, which would represent no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $413.70 million, up 13.2% from the year-ago period.

O's full-year Zacks Consensus Estimates are calling for earnings of $3.39 per share and revenue of $1.67 billion. These results would represent year-over-year changes of +2.11% and +12.05%, respectively.

Any recent changes to analyst estimates for O should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. O is currently a Zacks Rank #3 (Hold).

Investors should also note O's current valuation metrics, including its Forward P/E ratio of 17.57. This represents a premium compared to its industry's average Forward P/E of 9.9.

Meanwhile, O's PEG ratio is currently 5.53. 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. O's industry had an average PEG ratio of 5.53 as of yesterday's close.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 199, which puts 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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