Realty Income Corporation (O), headquartered in San Diego, California, is a real estate partner to the world's leading companies. With a market cap of $52.8 billion, the company owns and manages a portfolio of commercial properties located across the U.S. Realty Income focuses on acquiring single-tenant retail locations, leased to regional and national chains, and under long-term net lease agreements.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and O perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the REIT - retail industry. O's strategic acquisitions and diversified portfolio drive growth, reduce risk, and stabilize cash flows.
Despite its notable strength, O slipped 5.9% from its 52-week high of $61.09, achieved on Sep. 15. Over the past three months, O stock declined marginally, outperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 1.4% losses during the same time frame.
In the longer term, shares of O rose 1.6% on a six-month basis and climbed 1.4% over the past 52 weeks, outperforming XLRE’s six-month losses of 1.9% and 7.5% decline over the last year.
To confirm the bearish trend, O has been trading below its 50-day moving average since late October. Meanwhile, the stock’s current price level is mirroring its 200-day moving average, indicating stability.
On Nov. 3, O reported its Q3 results, and its shares closed down by 3.5% in the following trading session. Its adjusted FFO per share of $1.08 surpassed Wall Street expectations of $1.07. The company’s revenue was $1.5 billion, beating Wall Street's $1.4 billion forecast. O expects full-year adjusted FFO in the range of $4.25 to $4.27 per share.
In the competitive arena of REIT - retail, NNN REIT, Inc. (NNN) has lagged behind the stock, with a 2.9% downtick over the past six months and a 7.4% dip over the past 52 weeks.
Wall Street analysts are cautious on O’s prospects. The stock has a consensus “Hold” rating from the 24 analysts covering it, and the mean price target of $62.53 suggests a potential upside of 8.7% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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