In the most recent trading session, Prologis (PLD) closed at $111.17, marking a +0.88% correction from the previous day’s closing price. The stock outperformed the S&P 500, which recorded a 0.26% gain on the day, while the Dow recorded a 0.18% gain and the tech-heavy Nasdaq added 0.35%.
Heading into today, shares of the industrial real estate developer had gained 2.52% over the past month, outperforming the Financial sector’s gain of 0.75% and lagging the S&P 500’s gain of 3.25% in that time period.
Market participants will be closely watching Prologis’ financial results, which are due to be released shortly. In that report, analysts expect Prologis to post earnings of $1.34 per share, down 26.78% from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $1.86 billion, up 12.48% from the year-ago period.
Looking at the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $5.42 per share and revenue of $7.53 billion, which would represent changes of -3.39% and +10.39%, respectively, from the prior year.
Investors may also want to note recent changes to analyst estimates for Prologis. These latest adjustments often reflect shifting short-term business patterns. With this in mind, positive estimate revisions can be considered a sign of optimism for the company’s business outlook.
Empirical research shows that these estimate revisions are directly correlated with future stock price movements, and investors can take advantage of this by using the Zacks Rank, whose model takes these estimate revisions into account and delivers a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has remained stagnant within the past month. Prologis currently has a Zacks Rank #4 (Sell).
In terms of valuation, Prologis is currently trading with a Forward P/E ratio of 20.32, which marks a premium compared to its industry’s average Forward P/E ratio of 11.46.
It’s also important to note that PLD currently has a PEG ratio of 2.45. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account a company’s expected earnings growth rate. REITs and Equity Trusts – Other stocks have an average PEG ratio of 2.13, based on yesterday’s closing prices.
The REITs and Equity Trusts – Other industry is a part of the Financial sector. This industry currently has a Zacks Industry Rank of #169, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the vitality of our particular industry groups by calculating the average Zacks Rank of the individual stocks included in the groups, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To track all of these stock-moving metrics, and many more, in the coming trading sessions, don’t forget to utilize Zacks.com.
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