Markets

Simon Property (SPG) Stock Moves -0.37%: What You Should Know

Simon Property (SPG) closed at $61.80 in the latest trading session, marking a -0.37% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.23%. Elsewhere, the Dow lost 1.31%, while the tech-heavy Nasdaq lost 2.29%.

Prior to today's trading, shares of the shopping mall real estate investment trust had lost 4.73% over the past month. This has lagged the Finance sector's gain of 2.79% and the S&P 500's gain of 5.2% in that time.

Wall Street will be looking for positivity from SPG as it approaches its next earnings report date. On that day, SPG is projected to report earnings of $2.24 per share, which would represent a year-over-year decline of 25.08%. Our most recent consensus estimate is calling for quarterly revenue of $1.21 billion, down 13.2% from the year-ago period.

SPG's full-year Zacks Consensus Estimates are calling for earnings of $10.30 per share and revenue of $5.20 billion. These results would represent year-over-year changes of -14.45% and -9.68%, respectively.

Investors might also notice recent changes to analyst estimates for SPG. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Within the past 30 days, our consensus EPS projection has moved 3.86% lower. SPG currently has a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, SPG is holding a Forward P/E ratio of 6.02. This represents a discount compared to its industry's average Forward P/E of 9.7.

It is also worth noting that SPG currently has a PEG ratio of 1.2. 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 industry currently had an average PEG ratio of 5.58 as of yesterday's close.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 235, putting it in the bottom 8% 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.

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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