Prologis, Inc. (PLD): Don’t Let The Bear Send You Into A Panic Frenzy

Prologis, Inc. (NYSE:PLD) has been downgraded by Robert W. Baird on March 01 which now rates the stock as Neutral compared with Outperform rating suggested in the past. Analysts at Deutsche Bank, shed their negative views on December 18 by lifting it fromHold to Buy. The stock won favor of Jefferies analysts who expressed their confidence in it using an upgrade from Hold to Buy on April 12. Citigroup analysts came out with bullish views on April 06 when the call was made. They think the stock is now Buy compared to to their prior call for Neutral.

PLD stock dropped -0.83% in recent trade and currently has a stock-market value of $44.97B. The shares finished at $71.78, after trading as low as $71.23 earlier in the session. It hit an intraday high Thursday at $72.03. Trading activity significantly weakened as the volume at ready counter decreased to 2,226,489 shares versus 2,429,775 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,674,998 shares. The stock is now 30.01% above against its bear-market low of $55.21 on December 26, 2018. It has retreated -1.45% since it’s 52-week high of $72.82 reached in March. Now the market price is up 13.27% on the year and up 22.24% YTD.

Wall Street’s most bullish Prologis, Inc. (NYSE:PLD) analysts are predicting the share price to blow past $83 per share during the next 12 months. The current median share price forecast by them is $72, suggesting that the stock could increase 0.31% in that time frame. The average price target of $72.63 calls for a nearly 1.18% increase in the stock price.

Prologis, Inc. (PLD)’s 50 day simple moving average (SMA 50) price is $67.52 and its 200-day simple moving average (SMA 200) price is $65.78. The company’s stock currently has a total float of 626.09M shares. Its weekly volatility is hovering around 1.31% and felt 1.33% volatility in price over a month. On the upside, the share price will test short term resistance at around $72.13. On a downside, the stock is likely to find some support, which begins at $71.33. The failure to get near-term support could push it to $70.88.

When looking at valuations, Prologis, Inc. (PLD) has a cheap P/E of 23.86x as compared to industry average of 29.09x. Moreover, it trades for 48.6 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.03x price/book and 16.04x price/sales. Compared to others, Prologis, Inc. is in a different league with regards to profitability, having net margins of 58.6%. To put some perspective around this, the industry’s average net margin is 56.28%. PLD’s ROE is 8.7%, which is also considerably better than the industry’s ROE of 7.4%.

Shares of PLD have gained 11.9% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Prologis, Inc. (NYSE:PLD) has topped consensus earnings estimates in 3 quarters (25%), missed earnings in 9 quarters (75%), whereas at 0 occasion EPS met analyst expectations. PLD last reported earnings that exceeded expectations. The company raked in $0.8 per share, -23.08% change on the same period last year. That was better than consensus for $0.79. Revenue for the recent quarter stood at $679.2 million, up 10% on last year and below the $681.2 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $679.28 million to $795 million, which should be compared with $593.95 million generated last year. EPS is seen in a range of $0.71 to $0.74, against the $0.74 reported a year ago.