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

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In the latest trading session, Realty Income Corp. (O - Free Report) closed at $58.76, marking a -1.19% move from the previous day. This change lagged the S&P 500's 0.77% loss on the day. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 2.23%.

Prior to today's trading, shares of the real estate investment trust had gained 1.76% over the past month. This has lagged the Finance sector's gain of 2% and the S&P 500's gain of 4.66% 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 $1.01, up 4.12% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $965.86 million, up 19.18% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.05 per share and revenue of $3.91 billion. These totals would mark changes of +3.32% and +17.05%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Realty Income Corp.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. 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 0.11% lower. Realty Income Corp. is currently a Zacks Rank #3 (Hold).

In terms of valuation, Realty Income Corp. is currently trading at a Forward P/E ratio of 14.7. This represents a premium compared to its industry's average Forward P/E of 12.06.

It is also worth noting that O currently has a PEG ratio of 2.94. 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. The REIT and Equity Trust - Retail industry currently 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 group has a Zacks Industry Rank of 86, putting it in the top 35% 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.

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


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