Back to top

Image: Bigstock

Simon Property (SPG) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, Simon Property (SPG - Free Report) closed at $127.58, marking a +1.11% move from the previous day. This change lagged the S&P 500's 1.12% gain on the day. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq lost 0.08%.

Coming into today, shares of the shopping mall real estate investment trust had lost 2.1% in the past month. In that same time, the Finance sector gained 2.46%, while the S&P 500 gained 4.63%.

Simon Property will be looking to display strength as it nears its next earnings release. In that report, analysts expect Simon Property to post earnings of $2.74 per share. This would mark year-over-year growth of 10.48%. Our most recent consensus estimate is calling for quarterly revenue of $1.33 billion, up 7.27% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.73 per share and revenue of $5.48 billion. These totals would mark changes of -1.76% and +7.19%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Simon Property. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 has moved 0.04% higher. Simon Property is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Simon Property has a Forward P/E ratio of 10.75 right now. Its industry sports an average Forward P/E of 16, so we one might conclude that Simon Property is trading at a discount comparatively.

Investors should also note that SPG has a PEG ratio of 2.43 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. The REIT and Equity Trust - Retail industry currently had an average PEG ratio of 2.22 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 59, putting it in the top 24% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Simon Property Group, Inc. (SPG) - free report >>

Published in