The latest trading session saw Prologis (PLD) ending at $112.38, denoting a -1.8% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 1.07% for the day. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, lost 1.71%.
The industrial real estate developer's shares have seen a decrease of 5.3% over the last month, not keeping up with the Finance sector's loss of 3.42% and outstripping the S&P 500's loss of 7.03%.
Investors will be eagerly watching for the performance of Prologis in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.38, showcasing a 7.81% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.95 billion, up 6.9% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.73 per share and a revenue of $8.01 billion, demonstrating changes of +3.06% and +6.56%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Prologis. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Prologis presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Prologis is at present trading with a Forward P/E ratio of 19.98. This represents a premium compared to its industry's average Forward P/E of 11.24.
We can additionally observe that PLD currently boasts a PEG ratio of 2.73. 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. By the end of yesterday's trading, the REIT and Equity Trust - Other industry had an average PEG ratio of 2.26.
The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 134, putting it in the bottom 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Prologis, Inc. (PLD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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