Why Prologis (PLD) Outpaced the Stock Market Today

The most recent trading session ended with Prologis (PLD) standing at $104.14, reflecting a +0.79% shift from the previouse trading day’s closing. The stock outperformed the S&P 500, which registered a daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw an increase of 0.98%.

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Heading into today, shares of the industrial real estate developer had lost 10.78% over the past month, lagging the Finance sector’s loss of 2.93% and the S&P 500’s gain of 0.34% in that time.

Market participants will be closely following the financial results of Prologis in its upcoming release. The company plans to announce its earnings on January 21, 2025. The company is predicted to post an EPS of $1.38, indicating a 9.52% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.94 billion, up 10.44% from the year-ago period.

PLD’s full-year Zacks Consensus Estimates are calling for earnings of $5.45 per share and revenue of $7.52 billion. These results would represent year-over-year changes of -2.85% and +10.3%, respectively.

It’s also important for investors to be aware of any recent modifications to analyst estimates for Prologis. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

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Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.03% higher. Prologis is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Prologis is currently exchanging hands at a Forward P/E ratio of 18.96. This represents a premium compared to its industry’s average Forward P/E of 11.64.

We can additionally observe that PLD currently boasts a PEG ratio of 3.02. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. REIT and Equity Trust – Other stocks are, on average, holding a PEG ratio of 2.05 based on yesterday’s closing prices.

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