In the latest trading session, Simon Property (SPG) closed at $112.42, marking a +0.4% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 0.62%.
Heading into today, shares of the shopping mall real estate investment trust had lost 9.76% over the past month, lagging the Finance sector's loss of 5.19% and the S&P 500's gain of 3.71% in that time.
Simon Property will be looking to display strength as it nears its next earnings release. In that report, analysts expect Simon Property to post earnings of $3.15 per share. This would mark year-over-year growth of 13.31%. Meanwhile, our latest consensus estimate is calling for revenue of $1.33 billion, up 2.65% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.04 per share and revenue of $5.48 billion, which would represent changes of +1.43% and +3.55%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Simon Property. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. Simon Property is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Simon Property currently has a Forward P/E ratio of 9.3. Its industry sports an average Forward P/E of 12.96, so we one might conclude that Simon Property is trading at a discount comparatively.
Also, we should mention that SPG has a PEG ratio of 2.63. 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. The REIT and Equity Trust - Retail was holding an average PEG ratio of 2.63 at yesterday's closing price.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% 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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