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Simon Property (SPG) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3 min read

Simon Property (SPG) closed the most recent trading day at $161.83, moving +0.59% from the previous trading session. This move lagged the S&P 500's daily gain of 0.92%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.

Heading into today, shares of the shopping mall real estate investment trust had gained 6.47% over the past month, outpacing the Finance sector's gain of 3.59% and the S&P 500's loss of 0.85% in that time.

Wall Street will be looking for positivity from Simon Property as it approaches its next earnings report date. On that day, Simon Property is projected to report earnings of $2.85 per share, which would represent year-over-year growth of 31.34%. Meanwhile, our latest consensus estimate is calling for revenue of $1.31 billion, up 16.12% from the prior-year quarter.

Any recent changes to analyst estimates for Simon Property should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Simon Property is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Simon Property is holding a Forward P/E ratio of 13.82. For comparison, its industry has an average Forward P/E of 16.75, which means Simon Property is trading at a discount to the group.

Also, we should mention that SPG has a PEG ratio of 1.42. 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 industry currently had an average PEG ratio of 2.31 as of yesterday's close.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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