Gladstone Commercial (GOOD) Stock Drops Despite Market Gains: Important Facts to Note

Zacks
04-03

Gladstone Commercial (GOOD) ended the recent trading session at $15.06, demonstrating a -0.07% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 0.87%.

The real estate investment trust's shares have seen a decrease of 4.74% over the last month, not keeping up with the Finance sector's loss of 3.32% and outstripping the S&P 500's loss of 5.28%.

Market participants will be closely following the financial results of Gladstone Commercial in its upcoming release. The company is forecasted to report an EPS of $0.34, showcasing no movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $37.15 million, up 3.99% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.43 per share and a revenue of $152.52 million, signifying shifts of +0.7% and +2.09%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Gladstone Commercial. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.61% lower. Currently, Gladstone Commercial is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Gladstone Commercial is at present trading with a Forward P/E ratio of 10.56. This denotes a discount relative to the industry's average Forward P/E of 10.85.

Investors should also note that GOOD has a PEG ratio of 1.76 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the REIT and Equity Trust - Other industry had an average PEG ratio of 2.11.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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