In the latest trading session, Prologis (PLD) closed at $112.34, marking a +0.8% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.67%. Meanwhile, the Dow experienced a rise of 0.56%, and the technology-dominated Nasdaq saw an increase of 0.87%.
The the stock of industrial real estate developer has fallen by 8.48% in the past month, lagging the Finance sector's loss of 3.32% and the S&P 500's loss of 5.28%.
The investment community will be paying close attention to the earnings performance of Prologis in its upcoming release. The company is slated to reveal its earnings on April 16, 2025. In that report, analysts expect Prologis to post earnings of $1.38 per share. This would mark year-over-year growth of 7.81%. In the meantime, our current consensus estimate forecasts the revenue to be $1.94 billion, indicating a 5.89% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.73 per share and revenue of $7.96 billion. These totals would mark changes of +3.06% and +5.87%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Prologis. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Prologis possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Prologis is at present trading with a Forward P/E ratio of 19.46. This represents a premium compared to its industry's average Forward P/E of 10.85.
It's also important to note that PLD currently trades at a PEG ratio of 2.66. 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. The REIT and Equity Trust - Other industry had an average PEG ratio of 2.11 as trading concluded yesterday.
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 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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