Why Prologis (PLD) Dipped More Than Broader Market Today

Prologis (PLD) closed at $134.12 in the latest trading session, marking a -0.7% move from the prior day. This move lagged the S&P 500's daily loss of 0.11%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.41%.

Shares of the industrial real estate developer have appreciated by 1.96% over the course of the past month, underperforming the Finance sector's gain of 4.89% and the S&P 500's gain of 2.7%.

Analysts and investors alike will be keeping a close eye on the performance of Prologis in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.29, signifying a 5.74% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.81 billion, reflecting a 10.91% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.50 per share and a revenue of $7.5 billion, indicating changes of -1.96% and +10.05%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Prologis. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Prologis is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Prologis is currently being traded at a Forward P/E ratio of 24.55. This represents a premium compared to its industry's average Forward P/E of 11.31.

Also, we should mention that PLD has a PEG ratio of 2.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the REIT and Equity Trust - Other industry held an average PEG ratio of 2.4.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 147, finds itself in the bottom 42% echelons 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.

To follow PLD in the coming trading sessions, be sure to utilize 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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