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

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Realty Income Corp. (O - Free Report) closed at $65.41 in the latest trading session, marking a -0.76% move from the prior day. This change lagged the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.02%.

Heading into today, shares of the real estate investment trust had lost 10.57% over the past month, lagging the Finance sector's loss of 6.7% and the S&P 500's loss of 7.95% in that time.

Investors will be hoping for strength from Realty Income Corp. as it approaches its next earnings release. The company is expected to report EPS of $0.98, up 7.69% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $829.93 million, up 68.73% from the prior-year quarter.

O's full-year Zacks Consensus Estimates are calling for earnings of $3.92 per share and revenue of $3.31 billion. These results would represent year-over-year changes of +9.19% and +58.61%, respectively.

Investors might also notice recent changes to analyst estimates for Realty Income Corp.Recent revisions tend to reflect the latest 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. Within the past 30 days, our consensus EPS projection has moved 0.22% higher. Realty Income Corp. is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Realty Income Corp. is holding a Forward P/E ratio of 16.83. For comparison, its industry has an average Forward P/E of 13.38, which means Realty Income Corp. is trading at a premium to the group.

It is also worth noting that O currently has a PEG ratio of 4.25. 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. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 1.98 based on yesterday's closing prices.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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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