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

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Realty Income Corp. (O - Free Report) closed at $69.58 in the latest trading session, marking a +0.33% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 0.08%.

Heading into today, shares of the real estate investment trust had gained 7.07% over the past month, outpacing the Finance sector's gain of 5.58% and the S&P 500's gain of 5.93% in that time.

Investors will be hoping for strength from O as it approaches its next earnings release, which is expected to be February 20, 2019. The company is expected to report EPS of $0.75, down 1.32% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $343.16 million, up 10.47% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for O. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. O is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, O is currently trading at a Forward P/E ratio of 21.03. This valuation marks a premium compared to its industry's average Forward P/E of 14.33.

It is also worth noting that O currently has a PEG ratio of 4.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 2.96 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 153, which puts it in the bottom 40% 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.

To follow O in the coming trading sessions, be sure to utilize Zacks.com.


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