The looming earnings season often feels like a high-stakes game of chance. Investors scan the market for stocks that appear to be gearing up for a winning quarter, and Realty Income Corporation O may be one such contender. With its earnings announcement fast approaching, all eyes are on Realty Income, which seems to be in a prime position to outperform market expectations.
Positive Earnings Estimate Revision Activity
Realty Income is currently basking in favorable earnings estimate revision activity, an early indicator of a potential earnings triumph. The recent wave of analysts raising their estimates just before the earnings announcement signifies promising underlying trends for O. In fact, the Most Accurate Estimate for the current quarter stands at $1.05 per share, overshadowing the more general Zacks Consensus Estimate of $1.02 per share. This surge in estimates positions Realty Income with a Zacks Earnings ESP of +2.80% as it strides into the earnings season.
Realty Income Corporation Price and EPS Surprise
Realty Income Corporation price-eps-surprise | Realty Income Corporation Quote
Implications of Positive Zacks Earnings ESP
A positive reading for the Zacks Earnings ESP has historically proven to be a potent precursor of positive surprises as well as market outperformance. According to a recent 10-year backtest, stocks with a positive Earnings ESP and a Zacks Rank #3 (Hold) or better have achieved a positive surprise nearly 70% of the time. Moreover, they have boasted an average annual return of over 28%. With O holding a Zacks Rank #3 and an ESP in positive territory, this stock demands investors’ attention in the lead-up to earnings. All signs point to the possibility of a promising earnings report for Realty Income. The odds are in its favor.
Wouldn’t it be reckless to overlook such a promising contender? With consistent positive indicators leading up to this much-anticipated event, Realty Income has firmly established itself as a heavyweight in the earnings season ring. The prospect of a successful outcome is palpable, sending ripples of excitement through the investment community.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
