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

Zacks
01-22

Gladstone Commercial (GOOD) closed the latest trading day at $16.39, indicating a +0.49% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.88%. At the same time, the Dow added 1.24%, and the tech-heavy Nasdaq gained 0.65%.

The the stock of real estate investment trust has risen by 2.39% in the past month, lagging the Finance sector's gain of 3.25% and overreaching the S&P 500's gain of 1.17%.

The investment community will be closely monitoring the performance of Gladstone Commercial in its forthcoming earnings report. The company is scheduled to release its earnings on February 18, 2025. It is anticipated that the company will report an EPS of $0.35, marking a 2.78% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $37.45 million, indicating a 4.29% growth compared to the corresponding quarter of the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Gladstone Commercial. These revisions help to show the ever-changing nature of near-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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Gladstone Commercial holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Gladstone Commercial has a Forward P/E ratio of 11.29 right now. This represents a discount compared to its industry's average Forward P/E of 11.65.

It is also worth noting that GOOD currently has a PEG ratio of 1.88. 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. The REIT and Equity Trust - Other industry currently had an average PEG ratio of 2.13 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 32% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow GOOD in the coming trading sessions, be sure to utilize Zacks.com.

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