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Realty Income Corp. (O) closed at $66.50 in the latest trading session, marking a +0.99% move from the prior day. This move outpaced the S&P 500’s daily loss of 1.3%.

Coming into today, shares of the real estate investment trust had lost 8.92% in the past month. In that same time, the Finance sector lost 2.09%, while the S&P 500 lost 3.58%.

O will be looking to display strength as it nears its next earnings release. On that day, O is projected to report earnings of $0.91 per share, which would represent year-over-year growth of 12.35%. Our most recent consensus estimate is calling for quarterly revenue of $476.25 million, up 17.72% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.57 per share and revenue of $1.94 billion. These totals would mark changes of +5.31% and +17.6%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for O. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. O currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, O is holding a Forward P/E ratio of 18.43. For comparison, its industry has an average Forward P/E of 16.81, which means O is trading at a premium to the group.

We can also see that O currently has a PEG ratio of 4.22. 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. O’s industry had an average PEG ratio of 2.54 as of yesterday’s close.

The REIT and Equity Trust – Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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