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Realty Income Corp. (O) Dips More Than Broader Markets: What You Should Know

Realty Income Corp. (O) closed at $75.25 in the latest trading session, marking a -0.92% move from the prior day. This move lagged the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.19%.

Coming into today, shares of the real estate investment trust had gained 5.5% in the past month. In that same time, the Finance sector gained 1.48%, while the S&P 500 gained 3.61%.

Investors will be hoping for strength from O as it approaches its next earnings release. In that report, analysts expect O to post earnings of $0.83 per share. This would mark year-over-year growth of 2.47%. Our most recent consensus estimate is calling for quarterly revenue of $375.06 million, up 10.94% from the year-ago period.

O's full-year Zacks Consensus Estimates are calling for earnings of $3.29 per share and revenue of $1.48 billion. These results would represent year-over-year changes of +3.13% and +11.26%, respectively.

Investors should also note any recent changes to analyst estimates for O. 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 shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. O is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, O currently has a Forward P/E ratio of 23.1. This valuation marks a premium compared to its industry's average Forward P/E of 13.97.

Investors should also note that O has a PEG ratio of 6.29 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The REIT and Equity Trust - Retail was holding an average PEG ratio of 3.44 at yesterday's closing price.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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