Realty Income Corp. (O) Gains But Lags Market: What You Should Know
Realty Income Corp. (O) closed at $67.83 in the latest trading session, marking a +0.09% move from the prior day. The stock lagged the S&P 500's daily gain of 1.46%. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 6.63%.
Heading into today, shares of the real estate investment trust had gained 6.84% over the past month, outpacing the Finance sector's gain of 6.24% and the S&P 500's gain of 4.75% in that time.
Investors will be hoping for strength from Realty Income Corp. as it approaches its next earnings release, which is expected to be February 21, 2023. On that day, Realty Income Corp. is projected to report earnings of $0.99 per share, which would represent year-over-year growth of 5.32%. Meanwhile, our latest consensus estimate is calling for revenue of $853.29 million, up 24.56% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Realty Income Corp.Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% lower. Realty Income Corp. is currently a Zacks Rank #3 (Hold).
Digging into valuation, Realty Income Corp. currently has a Forward P/E ratio of 16.68. This represents a premium compared to its industry's average Forward P/E of 13.65.
Also, we should mention that O has a PEG ratio of 5.25. 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. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 2.35 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 178, which puts it in the bottom 30% 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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