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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 $72.23, marking a -1.45% move from the previous day. This move lagged the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, lost 0.24%.

Prior to today's trading, shares of the real estate investment trust had gained 3.84% over the past month. This has outpaced the Finance sector's gain of 3.25% and lagged the S&P 500's gain of 4.13% in that time.

O will be looking to display strength as it nears its next earnings release. In that report, analysts expect O to post earnings of $0.81 per share. This would mark year-over-year growth of 1.25%. Meanwhile, our latest consensus estimate is calling for revenue of $360.87 million, up 9.72% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.30 per share and revenue of $1.47 billion. These totals would mark changes of +3.45% and +10.38%, respectively, from last year.

Any recent changes to analyst estimates for O should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. O is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that O has a Forward P/E ratio of 22.23 right now. Its industry sports an average Forward P/E of 14.56, so we one might conclude that O is trading at a premium comparatively.

Also, we should mention that O has a PEG ratio of 4.97. 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 3.45 based on yesterday's closing prices.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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