Realty Income Corp. (O) Beats Stock Market Upswing: What Investors Need to Know

Zacks
02-06

In the latest trading session, Realty Income Corp. (O) closed at $54.43, marking a +0.74% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.39%. Meanwhile, the Dow experienced a rise of 0.71%, and the technology-dominated Nasdaq saw an increase of 0.2%.

The real estate investment trust's shares have seen an increase of 2.89% over the last month, not keeping up with the Finance sector's gain of 4.25% and outstripping the S&P 500's gain of 1.7%.

Investors will be eagerly watching for the performance of Realty Income Corp. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 24, 2025. It is anticipated that the company will report an EPS of $1.06, marking a 4.95% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.35 billion, up 25.1% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Realty Income Corp. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.13% decrease. At present, Realty Income Corp. boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, Realty Income Corp. is holding a Forward P/E ratio of 12.46. This signifies a discount in comparison to the average Forward P/E of 14.27 for its industry.

It is also worth noting that O currently has a PEG ratio of 1.94. 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. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 2.86 based on yesterday's closing prices.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% of all 250+ industries.

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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