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Prologis (PLD) Gains But Lags Market: What You Should Know

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In the latest trading session, Prologis (PLD - Free Report) closed at $105.99, marking a +1.56% move from the previous day. This move lagged the S&P 500's daily gain of 3.06%. At the same time, the Dow added 2.8%, and the tech-heavy Nasdaq gained 0.16%.

Prior to today's trading, shares of the industrial real estate developer had lost 14.38% over the past month. This has lagged the Finance sector's loss of 5.47% and the S&P 500's loss of 6.15% in that time.

Investors will be hoping for strength from Prologis as it approaches its next earnings release, which is expected to be October 19, 2022. On that day, Prologis is projected to report earnings of $1.76 per share, which would represent year-over-year growth of 69.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.13 billion, up 8.86% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.17 per share and revenue of $4.46 billion, which would represent changes of +24.58% and +7.58%, respectively, from the prior year.

Any recent changes to analyst estimates for Prologis should also be noted by investors. 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.

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 remained stagnant within the past month. Prologis is currently a Zacks Rank #3 (Hold).

In terms of valuation, Prologis is currently trading at a Forward P/E ratio of 20.18. Its industry sports an average Forward P/E of 11.51, so we one might conclude that Prologis is trading at a premium comparatively.

Meanwhile, PLD's PEG ratio is currently 2.24. 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 - Other was holding an average PEG ratio of 1.83 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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