Realty Income Corp. (O) closed the last day of trading at $64.88, which is -0.72% from the previous trading session. That change was narrower than the S&P 500’s 0.74% daily loss.
As today approached, shares of the real estate investment trust had lost 3.17% over the past month, outpacing the financial sector’s 6.55% loss and the 4.6% loss of the S&P 500 during this period.
Wall Street will be looking for positivity from Realty Income Corp. closer to the date of its next results report. In this report, analysts expect Realty Income Corp. posted earnings of $0.97 per share. This would mark a year-over-year growth of 12.79%. Meanwhile, our latest consensus estimate calls for revenue of $686.02 million, up 54.93% from the prior year quarter.
Looking to the full year, our Zacks consensus estimates suggest analysts are expecting earnings of $3.93 per share and revenue of $3.13 billion. These totals would mark changes of +9.47% and +49.96%, respectively, from last year.
It’s also important to note recent changes to analyst estimates for Realty Income Corp. These revisions help show the ever-changing nature of short-term trading trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, with #1 stocks returning an average of +25% per year since 1988. Over the past few months, the Zacks Consensus EPS estimate has fallen 0.25%. Realty Income Corp. Currently holds a Zacks rank of #3 (Hold).
In terms of valuation, Realty Income Corp. is currently trading at a forward P/E ratio of 16.61. This valuation marks a premium compared to the average Forward P/E of its sector of 15.17.
It should also be noted that O currently has a PEG ratio of 3.48. This popular measure is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. The REIT and Equity Trust – Retail held an average PEG ratio of 2.23 at yesterday’s closing price.
The REITs and Equity Trusts – Retail industry is part of the finance sector. This group has a Zacks industry ranking of 85, which places it in the top 34% of over 250 industries.
The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, at Zacks.com.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know our top 10 buy and hold tickers for all of 2022?
Last year 2021 Zacks Top 10 Stocks the portfolio generated gains as high as +147.7%. Now, a brand new portfolio has been selected from over 4,000 companies covered by the Zacks ranking. Don’t miss your chance to participate in this long term shopping
Access the Top 10 Zacks Stocks for 2022 today >>
Click to get this free report
Realty Income Corporation (O): Free Stock Analysis Report
To read this article on Zacks.com, click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.