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Realty Income Corp. (O) Dips More Than Broader Markets: What You Should Know

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Realty Income Corp. (O - Free Report) closed at $73.34 in the latest trading session, marking a -1.03% move from the prior day. This change lagged the S&P 500's 0.51% loss on the day.

Prior to today's trading, shares of the real estate investment trust had gained 14% over the past month. This has outpaced the Finance sector's gain of 5.35% and the S&P 500's gain of 3.08% in that time.

O will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2021. On that day, O is projected to report earnings of $0.91 per share, which would represent year-over-year growth of 12.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $479.07 million, up 18.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.57 per share and revenue of $1.95 billion. These totals would mark changes of +5.31% and +18.11%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for O. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. O currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, O is holding a Forward P/E ratio of 20.75. This represents a premium compared to its industry's average Forward P/E of 16.68.

Also, we should mention that O has a PEG ratio of 4.75. 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. O's industry had an average PEG ratio of 2.65 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 38, which puts it in the top 15% 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 Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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