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Prologis (PLD) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, Prologis (PLD - Free Report) closed at $113.97, marking a -0.5% move from the previous day. This change lagged the S&P 500's daily gain of 0.53%. On the other hand, the Dow registered a gain of 1.06%, and the technology-centric Nasdaq increased by 0.03%.

Coming into today, shares of the industrial real estate developer had lost 5.21% in the past month. In that same time, the Finance sector gained 1.92%, while the S&P 500 gained 1.02%.

Market participants will be closely following the financial results of Prologis in its upcoming release. The company is forecasted to report an EPS of $1.39, showcasing a 10.32% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.94 billion, showing a 10.48% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.44 per share and revenue of $7.52 billion, which would represent changes of -3.03% and +10.31%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Prologis. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.03% fall in the Zacks Consensus EPS estimate. Prologis is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Prologis is presently being traded at a Forward P/E ratio of 21.05. This represents a premium compared to its industry's average Forward P/E of 12.19.

It is also worth noting that PLD currently has a PEG ratio of 3.02. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. PLD's industry had an average PEG ratio of 2.09 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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