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Realty Income Corp. (O) Gains As Market Dips: What You Should Know

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In the latest trading session, Realty Income Corp. (O - Free Report) closed at $72.43, marking a +1.15% move from the previous day. This change outpaced the S&P 500's 1.15% loss on the day. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, lost 0.13%.

Heading into today, shares of the real estate investment trust had gained 3.13% over the past month, outpacing the Finance sector's gain of 1.2% and the S&P 500's gain of 1.44% in that time.

Realty Income Corp. will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2022. In that report, analysts expect Realty Income Corp. to post earnings of $0.95 per share. This would mark year-over-year growth of 7.95%. Meanwhile, our latest consensus estimate is calling for revenue of $808.49 million, up 74.14% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.91 per share and revenue of $3.27 billion. These totals would mark changes of +8.91% and +56.83%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Realty Income Corp.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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.38% lower within the past month. Realty Income Corp. currently has a Zacks Rank of #3 (Hold).

Investors should also note Realty Income Corp.'s current valuation metrics, including its Forward P/E ratio of 18.32. This valuation marks a premium compared to its industry's average Forward P/E of 13.45.

It is also worth noting that O currently has a PEG ratio of 5.18. 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 was holding an average PEG ratio of 2.06 at yesterday's closing price.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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