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

In the latest trading session, Realty Income Corp. (O) closed at $74.12, marking a +1.19% move from the previous day. This change lagged the S&P 500's 1.61% gain on the day. Elsewhere, the Dow gained 1.45%, while the tech-heavy Nasdaq added 0.36%.

Heading into today, shares of the real estate investment trust had gained 10.02% over the past month, outpacing the Finance sector's loss of 3.25% and the S&P 500's loss of 1.42% in that time.

Wall Street will be looking for positivity from Realty Income Corp. as it approaches its next earnings report date. This is expected to be May 4, 2022. In that report, analysts expect Realty Income Corp. to post earnings of $0.97 per share. This would mark year-over-year growth of 12.79%. Meanwhile, our latest consensus estimate is calling for revenue of $761.18 million, up 71.9% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.94 per share and revenue of $3.14 billion, which would represent changes of +9.75% and +50.65%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Realty Income Corp.These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. Realty Income Corp. is currently a Zacks Rank #3 (Hold).

In terms of valuation, Realty Income Corp. is currently trading at a Forward P/E ratio of 18.58. This valuation marks a premium compared to its industry's average Forward P/E of 16.42.

It is also worth noting that O currently has a PEG ratio of 3.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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

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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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