Simon Property (SPG) Stock Sinks As Market Gains: What You Should Know

·3-min read

Simon Property (SPG) closed the most recent trading day at $103.30, moving -0.17% from the previous trading session. This change lagged the S&P 500's daily gain of 0.17%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.67%.

Coming into today, shares of the shopping mall real estate investment trust had lost 15.06% in the past month. In that same time, the Finance sector lost 8.6%, while the S&P 500 gained 0.25%.

Investors will be hoping for strength from Simon Property as it approaches its next earnings release. The company is expected to report EPS of $2.81, up 1.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.33 billion, up 2.65% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.04 per share and revenue of $5.48 billion, which would represent changes of +1.43% and +3.55%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Simon Property. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Within the past 30 days, our consensus EPS projection has moved 0.28% lower. Simon Property currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Simon Property currently has a Forward P/E ratio of 8.59. This valuation marks a discount compared to its industry's average Forward P/E of 11.82.

We can also see that SPG currently has a PEG ratio of 2.43. 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. The REIT and Equity Trust - Retail industry currently had an average PEG ratio of 2.45 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 73, which puts it in the top 29% 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.

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