Realty Income Corp. (O) Gains But Lags Market: What You Should Know

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Realty Income Corp. (O) closed at $57.38 in the latest trading session, marking a +0.24% move from the prior day. This move lagged the S&P 500's daily gain of 0.58%. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 0.55%.

Prior to today's trading, shares of the real estate investment trust had lost 1.33% over the past month. This has lagged the Finance sector's loss of 0.89% and the S&P 500's loss of 0.84% in that time.

Investors will be eagerly watching for the performance of Realty Income Corp. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 5, 2025. In that report, analysts expect Realty Income Corp. to post earnings of $0.97 per share. This would mark a year-over-year decline of 5.83%. Our most recent consensus estimate is calling for quarterly revenue of $1.38 billion, up 9.26% from the year-ago period.

O's full-year Zacks Consensus Estimates are calling for earnings of $4 per share and revenue of $5.59 billion. These results would represent year-over-year changes of -4.53% and +5.98%, respectively.

It is also important to note the recent changes to analyst estimates for Realty Income Corp. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.35% decrease. Right now, Realty Income Corp. possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Realty Income Corp. is presently being traded at a Forward P/E ratio of 14.3. This denotes a premium relative to the industry's average Forward P/E of 13.24.

We can also see that O currently has a PEG ratio of 2.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the REIT and Equity Trust - Retail industry held an average PEG ratio of 2.97.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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This article originally published on Zacks Investment Research (zacks.com).

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