Why Gladstone Commercial (GOOD) Outpaced the Stock Market Today

In this article:

In the latest market close, Gladstone Commercial (GOOD) reached $15.90, with a +0.7% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.28% for the day. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.15%.

Shares of the real estate investment trust have appreciated by 6.98% over the course of the past month, outperforming the Finance sector's gain of 3.08% and the S&P 500's gain of 2%.

The investment community will be paying close attention to the earnings performance of Gladstone Commercial in its upcoming release. In that report, analysts expect Gladstone Commercial to post earnings of $0.35 per share. This would mark year-over-year growth of 2.94%. Our most recent consensus estimate is calling for quarterly revenue of $35.95 million, down 1.4% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $1.39 per share and a revenue of $144.14 million, demonstrating changes of -5.44% and -2.33%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Gladstone Commercial. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Gladstone Commercial boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Gladstone Commercial is at present trading with a Forward P/E ratio of 11.4. This denotes a discount relative to the industry's average Forward P/E of 13.16.

We can also see that GOOD currently has a PEG ratio of 1.9. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The REIT and Equity Trust - Other industry had an average PEG ratio of 2.41 as trading concluded yesterday.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Gladstone Commercial Corporation (GOOD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Advertisement