Back to top

Image: Bigstock

Why the Market Dipped But Prologis (PLD) Gained Today

Read MoreHide Full Article

In the latest trading session, Prologis (PLD - Free Report) closed at $117.80, marking a +1.4% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq lost 0.59%.

Shares of the industrial real estate developer witnessed a gain of 0.75% over the previous month, trailing the performance of the Finance sector with its gain of 6.66% and the S&P 500's gain of 3.76%.

Analysts and investors alike will be keeping a close eye on the performance of Prologis in its upcoming earnings disclosure. In that report, analysts expect Prologis to post earnings of $1.39 per share. This would mark year-over-year growth of 10.32%. Meanwhile, our latest consensus estimate is calling for revenue of $1.94 billion, up 10.48% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.44 per share and revenue of $7.52 billion. These totals would mark changes of -3.03% and +10.31%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Prologis. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, there's been a 0.03% fall in the Zacks Consensus EPS estimate. Prologis is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Prologis is holding a Forward P/E ratio of 21.35. This indicates a premium in contrast to its industry's Forward P/E of 12.78.

Also, we should mention that PLD has a PEG ratio of 3.4. 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. PLD's industry had an average PEG ratio of 2.28 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Prologis, Inc. (PLD) - free report >>

Published in