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Digital Realty Trust (DLR) Outpaces Stock Market Gains: What You Should Know

Digital Realty Trust (DLR) closed at $101.66 in the latest trading session, marking a +0.95% move from the prior day. This move outpaced the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.

Prior to today's trading, shares of the real estate investment trust had lost 9.08% over the past month. This has was narrower than the Finance sector's loss of 11.27% and lagged the S&P 500's loss of 3.9% in that time.

Digital Realty Trust will be looking to display strength as it nears its next earnings release. On that day, Digital Realty Trust is projected to report earnings of $1.63 per share, which would represent a year-over-year decline of 2.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.34 billion, up 19.11% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.70 per share and revenue of $5.75 billion. These totals would mark changes of 0% and +22.46%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Digital Realty Trust. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 2.87% lower. Digital Realty Trust is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Digital Realty Trust currently has a Forward P/E ratio of 15.03. For comparison, its industry has an average Forward P/E of 10.71, which means Digital Realty Trust is trading at a premium to the group.

It is also worth noting that DLR currently has a PEG ratio of 2.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DLR's industry had an average PEG ratio of 2.37 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 165, putting it in the bottom 35% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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