Realty Income Corp. (O) Stock Moves -0.89%: What you need to know

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IDuring the last trading session, Realty Income Corp. (O) closed at $71.52, marking a -0.89% move from the previous day. That move was narrower than the S&P 500’s 1.69% daily loss. Elsewhere, the Dow Jones lost 1.19%, while the tech-heavy Nasdaq added 0.14%.

Prior to today’s trading, shares of the real estate investment trust had gained 10.42% in the past month. This outpaced the financial sector’s gain of 5.85% and the S&P 500’s gain of 7.88% during this period.

Realty Income Corp. will look to show strength ahead of its next earnings release, which is expected on May 4, 2022. The company is expected to post EPS of $0.97, up 12.79% from the quarter. of the previous year. Meanwhile, Zacks consensus estimate for revenue calls for net sales of $761.18 million, up 71.9% from the prior year period.

Looking to the full year, our Zacks consensus estimates suggest analysts are expecting earnings of $3.95 per share and revenue of $3.14 billion. These totals would mark changes of +10.03% and +50.65%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Realty Income Corp. These recent revisions tend to reflect the evolving nature of short-term trading trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business prospects.

Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, with #1 stocks returning an average of +25% per year since 1988. Over the past few months, the Zacks Consensus EPS estimate has increased by 0.36%. Realty Income Corp. currently sports a Zacks ranking of #2 (buy).

Valuation is also important, so investors should note that Realty Income Corp. has a forward P/E ratio of 18.29 right now. Its industry sports an average Forward P/E of 15.89, so we could conclude that Realty Income Corp. trades at a premium comparatively.

Additionally, it is worth mentioning that O has a PEG ratio of 3.83. This measure is used in the same way as the famous P/E ratio, but the PEG ratio also takes into account the growth rate of the stock’s expected earnings. O’s industry had an average PEG ratio of 2.21 at yesterday’s close.

The REITs and Equity Trusts – Retail industry is part of the finance sector. This group has a Zacks industry ranking of 62, which places it in the top 25% of over 250 industries.

The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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