Prologis (PLD) Boasts Earnings & Price Momentum: Should You Buy?
The Zacks Focus List offers investors a way to easily find top-rated stocks and build a winning investment portfolio. Here's why you should take advan...
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When stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
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The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Prologis (PLD)
Prologis Inc. is a leading industrial real estate investment trust (REIT) that acquires, develops, operates and manages industrial real estate space in the Americas, Asia and Europe. The company principally targets investments in distribution facilities for customers who are engaged in global trade and depend on efficient movement of goods through the global supply chain.
PLD, a #2 (Buy) stock, was added to the Focus List on June 3, 2020 at $95.46 per share. Since then, shares have increased 45.06% to $138.47.
For fiscal 2021, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.07 to $4.07. PLD boasts an average earnings surprise of 2.7%.
Moreover, analysts are expecting PLD's earnings to grow 7.1% for the current fiscal year.
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