Realty Income Corp. (O) Gains As Market Dips: What You Should Know
In the latest trading session, Realty Income Corp. (O) closed at $67.73, marking a +0.21% move from the previous day. This move outpaced the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.67%.
Coming into today, shares of the real estate investment trust had gained 5.48% in the past month. In that same time, the Finance sector gained 8.01%, while the S&P 500 gained 8.32%.
Realty Income Corp. will be looking to display strength as it nears its next earnings release, which is expected to be February 21, 2023. The company is expected to report EPS of $0.99, up 5.32% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $853.29 million, up 24.56% from the year-ago period.
Any recent changes to analyst estimates for Realty Income Corp. should also be noted by investors. These revisions help to show the ever-changing nature of 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, 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 remained stagnant. Realty Income Corp. currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Realty Income Corp. has a Forward P/E ratio of 16.64 right now. This represents a premium compared to its industry's average Forward P/E of 13.99.
Meanwhile, O's PEG ratio is currently 5.23. 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. The REIT and Equity Trust - Retail industry currently had an average PEG ratio of 2.39 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 189, putting it in the bottom 25% 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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