Realty Income Corp. (O) gains as the market goes down: what you need to know

Realty Income Corp. (O) closed at $70.67 last trading session, marking a +0.14% move from the previous day. That move topped the S&P 500’s daily loss of 1.26%. Meanwhile, the Dow Jones lost 0.8% and the tech-heavy Nasdaq lost 0.44%.

Going into today, shares of the real estate investment trust had gained 9.12% over the past month, outpacing the financials sector’s gain of 3.84% and the S&P 500’s gain of 6, 07% during this period.

Investors are hoping for the strength of Realty Income Corp. approaching the next publication of its results. That day, Realty Income Corp. is expected to report earnings of $0.97 per share, which would represent 12.79% year-over-year growth. Meanwhile, our latest consensus estimate calls for revenue of $744.67 million, up 68.17% from the prior year quarter.

For the full year, our Zacks consensus estimates call for earnings of $3.95 per share and revenue of $3.13 billion, which would represent swings of +10.03% and +49, 96%, respectively, compared to the previous year.

It’s also important to note recent changes to analyst estimates for Realty Income Corp. These revisions generally reflect the latest short-term trading trends, which may change frequently. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system is proven and externally audited for outperformance, with #1 stocks returning an average of +25 % per year since 1988. The Zacks Consensus EPS estimate rose 0.36% over the past month. Realty Income Corp. currently holds a Zacks rank of #2 (buy).

Digging into the valuation, Realty Income Corp. currently has a Forward P/E ratio of 17.89. This valuation marks a premium compared to the average Forward P/E of its sector of 16.06.

Meanwhile, O’s PEG ratio is currently 3.75. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. 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 industry currently has a Zacks Industry Ranking of 78, which places it in the top 31% 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.

Be sure to use Zacks.com to track all of these stock movement metrics, and more, in future trading sessions.

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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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