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Gladstone Commercial (GOOD) Laps the Stock Market: Here's Why

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Gladstone Commercial (GOOD - Free Report) closed the latest trading day at $16.13, indicating a +0.62% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.13%. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.52%.

Shares of the real estate investment trust have appreciated by 10.1% over the course of the past month, outperforming the Finance sector's gain of 4.44% and the S&P 500's gain of 3.67%.

The investment community will be closely monitoring the performance of Gladstone Commercial in its forthcoming earnings report. On that day, Gladstone Commercial is projected to report earnings of $0.35 per share, which would represent year-over-year growth of 2.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.95 million, down 1.4% from the year-ago period.

GOOD's full-year Zacks Consensus Estimates are calling for earnings of $1.39 per share and revenue of $144.14 million. These results would represent year-over-year changes of -5.44% and -2.33%, respectively.

It is also important to note the recent changes to analyst estimates for Gladstone Commercial. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 1.09% higher within the past month. Gladstone Commercial currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Gladstone Commercial is presently being traded at a Forward P/E ratio of 11.57. This expresses a discount compared to the average Forward P/E of 13.18 of its industry.

We can additionally observe that GOOD currently boasts a PEG ratio of 1.93. 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. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.48 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 37% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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