Senior Housing Properties (SNH) Gains As Market Dips: What You Should Know
Senior Housing Properties (SNH) closed at $8.12 in the latest trading session, marking a +0.87% move from the prior day. This change outpaced the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 0.16%.
Coming into today, shares of the residential care real estate investment trust had lost 19.74% in the past month. In that same time, the Finance sector gained 3.11%, while the S&P 500 gained 2.07%.
Investors will be hoping for strength from SNH as it approaches its next earnings release, which is expected to be May 9, 2019. On that day, SNH is projected to report earnings of $0.38 per share, which would represent a year-over-year decline of 15.56%. Our most recent consensus estimate is calling for quarterly revenue of $269.96 million, down 2.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.36 per share and revenue of $1.03 billion. These totals would mark changes of -14.47% and -7.44%, respectively, from last year.
Any recent changes to analyst estimates for SNH should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 16.67% lower within the past month. SNH is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that SNH has a Forward P/E ratio of 5.93 right now. For comparison, its industry has an average Forward P/E of 15.16, which means SNH is trading at a discount to the group.
Also, we should mention that SNH has a PEG ratio of 2.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SNH's industry had an average PEG ratio of 2.95 as of yesterday's close.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming 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.