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

In the latest trading session, Realty Income Corp. (O) closed at $66.39, marking a +1.41% move from the previous day. This move outpaced the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.14%.

Heading into today, shares of the real estate investment trust had lost 4.34% over the past month, outpacing the Finance sector's loss of 4.35% and lagging the S&P 500's loss of 3.32% in that time.

Wall Street will be looking for positivity from Realty Income Corp. as it approaches its next earnings report date. On that day, Realty Income Corp. is projected to report earnings of $0.98 per share, which would represent year-over-year growth of 11.36%. Our most recent consensus estimate is calling for quarterly revenue of $809.49 million, up 74.35% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.92 per share and revenue of $3.27 billion. These totals would mark changes of +9.19% and +56.98%, respectively, from last year.

Any recent changes to analyst estimates for Realty Income Corp. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Realty Income Corp. is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Realty Income Corp. has a Forward P/E ratio of 16.69 right now. Its industry sports an average Forward P/E of 12.53, so we one might conclude that Realty Income Corp. is trading at a premium comparatively.

It is also worth noting that O currently has a PEG ratio of 4.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 1.86 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 81, which puts it in the top 33% 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.