Simon Property (SPG) closed the most recent trading day at $108.19, moving -0.88% from the previous trading session. This move lagged the S&P 500's daily gain of 0.02%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.22%.
Coming into today, shares of the shopping mall real estate investment trust had lost 3.86% in the past month. In that same time, the Finance sector lost 1.61%, while the S&P 500 lost 2.86%.
Investors will be hoping for strength from Simon Property as it approaches its next earnings release. In that report, analysts expect Simon Property to post earnings of $2.98 per share. This would mark year-over-year growth of 0.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.37 billion, up 3.95% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.91 per share and revenue of $5.52 billion. These totals would mark changes of +0.34% and +4.33%, respectively, from last 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. Simon Property is currently a Zacks Rank #3 (Hold).
In terms of valuation, Simon Property is currently trading at a Forward P/E ratio of 9.17. This valuation marks a discount compared to its industry's average Forward P/E of 11.62.
Investors should also note that SPG has a PEG ratio of 4.49 right now. 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. SPG's industry had an average PEG ratio of 3.08 as of yesterday's close.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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