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Simon Property (SPG) Stock Sinks As Market Gains: What You Should Know

Simon Property (SPG) closed at $62.50 in the latest trading session, marking a -0.78% move from the prior day. This move lagged the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 1.39%, and the Nasdaq, a tech-heavy index, added 0.52%.

Investors will be hoping for strength from SPG as it approaches its next earnings release, which is expected to be August 10, 2020. The company is expected to report EPS of $2.31, down 22.74% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.21 billion, down 13.2% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.36 per share and revenue of $5.22 billion, which would represent changes of -13.95% and -9.38%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for SPG. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate has moved 1.99% lower within the past month. SPG is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, SPG is currently trading at a Forward P/E ratio of 6.08. For comparison, its industry has an average Forward P/E of 10.14, which means SPG is trading at a discount to the group.

Meanwhile, SPG's PEG ratio is currently 1.22. 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. The REIT and Equity Trust - Retail industry currently had an average PEG ratio of 5.91 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 237, putting it in the bottom 7% 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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