Here's Why Gladstone Commercial (GOOD) Gained But Lagged the Market Today

Zacks
01-10

Gladstone Commercial (GOOD) closed the latest trading day at $16.03, indicating a +0.12% change from the previous session's end. The stock lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.

The real estate investment trust's shares have seen a decrease of 4.92% over the last month, not keeping up with the Finance sector's loss of 4.27% and the S&P 500's loss of 2.7%.

Market participants will be closely following the financial results of Gladstone Commercial in its upcoming release. On that day, Gladstone Commercial is projected to report earnings of $0.35 per share, which would represent a year-over-year decline of 2.78%. Meanwhile, our latest consensus estimate is calling for revenue of $37.45 million, up 4.29% from the prior-year quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Gladstone Commercial. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Gladstone Commercial possesses a Zacks Rank of #2 (Buy).

With respect to valuation, Gladstone Commercial is currently being traded at a Forward P/E ratio of 11.09. This indicates a discount in contrast to its industry's Forward P/E of 11.27.

We can additionally observe that GOOD currently boasts a PEG ratio of 1.85. 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. As of the close of trade yesterday, the REIT and Equity Trust - Other industry held an average PEG ratio of 1.92.

The REIT and Equity Trust - Other industry is part of the Finance sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 36% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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