Prologis (PLD) Stock Sinks As Market Gains: What You Should Know
Prologis (PLD) closed at $118.36 in the latest trading session, marking a -0.29% move from the prior day. This change lagged the S&P 500's 1.3% gain on the day. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 7.48%.
Heading into today, shares of the industrial real estate developer had lost 5.28% over the past month, outpacing the Finance sector's loss of 10.17% and lagging the S&P 500's loss of 2.95% in that time.
Wall Street will be looking for positivity from Prologis as it approaches its next earnings report date. The company is expected to report EPS of $1.22, up 11.93% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.63 billion, up 51.34% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.52 per share and revenue of $6.77 billion. These totals would mark changes of +6.98% and +37.88%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Prologis. 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.
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.
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 0.02% lower. Prologis is currently a Zacks Rank #3 (Hold).
Investors should also note Prologis's current valuation metrics, including its Forward P/E ratio of 21.49. This represents a premium compared to its industry's average Forward P/E of 10.86.
It is also worth noting that PLD currently has a PEG ratio of 3.03. 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 - Other industry currently had an average PEG ratio of 2.36 as of yesterday's close.
The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% 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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