April 22, 2024

Simon Property (SPG) Outpaces Stock Market Gains: What You Should Know

Simon Property (SPG) ended the recent trading session at $144.28, demonstrating a +0.42% swing from the preceding day’s closing price. This move outpaced the S&P 500’s daily gain of 0.04%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.03%.

The the stock of shopping mall real estate investment trust has risen by 17.03% in the past month, leading the Finance sector’s gain of 8.22% and the S&P 500’s gain of 5.28%.

Analysts and investors alike will be keeping a close eye on the performance of Simon Property in its upcoming earnings disclosure. The company’s upcoming EPS is projected at $3.35, signifying a 6.35% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.47 billion, showing a 4.78% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.17 per share and a revenue of $5.6 billion, indicating changes of +2.53% and +5.8%, respectively, from the former 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Simon Property is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Simon Property has a Forward P/E ratio of 11.81 right now. Its industry sports an average Forward P/E of 13.91, so one might conclude that Simon Property is trading at a discount comparatively.

Meanwhile, SPG’s PEG ratio is currently 6.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As the market closed yesterday, the REIT and Equity Trust – Retail industry was having an average PEG ratio of 3.39.

The REIT and Equity Trust – Retail industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 36, positioning it in the top 15% 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.

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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Simon Property Group, Inc. (SPG) : Free Stock Analysis Report

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