Why Realty Income Corp. (O) Outpaced the Stock Market Today

Zacks
02-20

Realty Income Corp. (O) closed the most recent trading day at $55.67, moving +0.8% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.24%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq gained 0.08%.

The the stock of real estate investment trust has fallen by 0.05% in the past month, lagging the Finance sector's gain of 3.3% and the S&P 500's gain of 2.37%.

Analysts and investors alike will be keeping a close eye on the performance of Realty Income Corp. in its upcoming earnings disclosure. The company's earnings report is set to go public on February 24, 2025. The company is forecasted to report an EPS of $1.06, showcasing a 4.95% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.35 billion, reflecting a 25.1% rise from the equivalent quarter last year.

Investors might also notice recent changes to analyst estimates for Realty Income Corp. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.27% lower within the past month. Right now, Realty Income Corp. possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Realty Income Corp. has a Forward P/E ratio of 12.77 right now. This signifies a discount in comparison to the average Forward P/E of 14.72 for its industry.

We can also see that O currently has a PEG ratio of 1.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the REIT and Equity Trust - Retail industry had an average PEG ratio of 2.78.

The REIT and Equity Trust - Retail industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 141, placing it within the bottom 44% of over 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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