Latest news with #PLD
Yahoo
2 days ago
- Business
- Yahoo
Is it Wise to Retain Prologis Stock in Your Portfolio Now?
Prologis PLD is poised to gain from its strategically located modern distribution facilities in key markets globally and scale. Prudent buyouts and development and a healthy balance sheet will drive growth. The company is also converting some of its warehouses into data centers to capitalize on the growing opportunity in this asset category. However, amid macroeconomic uncertainty and geopolitical issues, customers remain focused on cost controls and delay their decision-making with respect to leasing. Elevated interest expenses add to PLD's concerns. Prologis provides industrial distribution warehouse space in some of the busiest distribution markets across the globe. The properties of the company are typically located in large, supply-constrained infill markets in close proximity to airports, seaports and ground transportation facilities, which facilitates rapid distribution of customers' products. The solid demand for Prologis' strategically located facilities has driven healthy operating performance over the past several quarters. The company's new and renewal leases are expected to translate into considerable rises in future rental income. Our estimate points to a year-over-year increase of 6.3% in rental revenues in 2025. Prologis continues to bolster its presence in high-barrier, high-growth markets through strategic acquisitions and development activities. In the first quarter of 2025, the company's share of acquisitions amounted to $811 million. For 2025, the company anticipates acquisitions at Prologis share between $750 million and $1.25 billion. Development starts are expected in the range of $1.5-$2.0 billion. Prologis maintains a healthy balance sheet position with ample flexibility. As of March 31, 2025, this industrial REIT had a total available liquidity of $6.52 billion. As of the same date, the company's weighted average interest rate on its share of the total debt was 3.2%, with a weighted average term of 8.7 years. In addition, as of March 31, 2025, the company's credit ratings were A2 (Outlook Positive) from Moody's and A (Outlook Stable) from Standard & Poor's, enabling the company to borrow at an advantageous rate. The demand for high-performing data centers is likely to increase in the coming years amid high growth in cloud computing, the Internet of Things (IoT), big data and elevated requirements for third-party IT infrastructure. To capitalize on this growing opportunity, Prologis is focusing on both warehouse conversions and ground-up developments, which will aid future revenue growth. Solid dividend payouts are arguably the biggest enticements for REIT shareholders, and Prologis remains committed to that. In the last five years, Prologis has increased its dividend five times, and its five-year annualized dividend growth rate is 13.71%. Given the company's solid operating platform, opportunities for growth and decent financial position compared with the industry, this dividend rate is expected to be sustainable in the near term. Check Prologis' dividend history here. Analysts seem bullish on this Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 FFO per share indicates a favorable outlook as it has moved marginally northward over the past month to $5.70. In a volatile and still elevated interest rate environment and geopolitical concerns, customers remain focused on cost controls and delaying their decisions with respect to decision-making for leasing. As such, demand remains subdued, and this trend is expected to continue in the near term. Despite the Federal Reserve announcing rate cuts in the second half of 2024, the interest rate is still high and is a concern for Prologis. The company's consolidated debt as of March 31, 2025 was $32.26 billion. For 2025, our estimate indicates an 11.7% year-over-year increase in the company's interest expenses. Shares of Prologis have declined 6.2% over the past three months, underperforming the industry's fall of 1.2%. Image Source: Zacks Investment Research Some better-ranked stocks from the REIT sector are VICI Properties VICI and W.P. Carey WPC,each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for VICI Properties' 2025 FFO per share is pegged at $2.34, up 3.54% year over year. The Zacks Consensus Estimate for W.P. Carey's2025 FFO per share is pegged at $4.88, up 3.83% year over year. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. 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 Prologis, Inc. (PLD) : Free Stock Analysis Report W.P. Carey Inc. (WPC) : Free Stock Analysis Report VICI Properties Inc. (VICI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-06-2025
- Business
- Yahoo
Prologis (PLD) Stock Moves -1.07%: What You Should Know
Prologis (PLD) ended the recent trading session at $107.28, demonstrating a -1.07% change from the preceding day's closing price. This move was narrower than the S&P 500's daily loss of 1.13%. Meanwhile, the Dow lost 1.79%, and the Nasdaq, a tech-heavy index, lost 1.3%. Shares of the industrial real estate developer witnessed a loss of 0.72% over the previous month, trailing the performance of the Finance sector with its gain of 1.24%, and the S&P 500's gain of 3.55%. The investment community will be closely monitoring the performance of Prologis in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.41, reflecting a 5.22% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2 billion, reflecting a 7.88% rise from the equivalent quarter last year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.7 per share and revenue of $8.09 billion. These totals would mark changes of +2.52% and +7.65%, respectively, from last year. Investors should also take note of any recent adjustments to analyst estimates for Prologis. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.18% higher. At present, Prologis boasts a Zacks Rank of #3 (Hold). From a valuation perspective, Prologis is currently exchanging hands at a Forward P/E ratio of 19.02. This valuation marks a premium compared to its industry average Forward P/E of 11.8. Investors should also note that PLD has a PEG ratio of 2.75 right now. 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 average PEG ratio for the REIT and Equity Trust - Other industry stood at 2.53 at the close of the market yesterday. The REIT and Equity Trust - Other industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 135, positioning it in the bottom 46% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. 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 Prologis, Inc. (PLD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
Prologis, Inc. (PLD): A Bull Case Theory
We came across a bullish thesis on Prologis, Inc. (PLD) on Business Model Mastery's Substack. In this article, we will summarize the bulls' thesis on PLD. Prologis, Inc. (PLD)'s share was trading at $108.60 as of 30th May. PLD's trailing and forward P/E were 27.08 and 47.17 respectively according to Yahoo Finance. A worker operating heavy machinery on a large construction site, at the center of a bustling city skyline. Prologis is a dominant force in global logistics real estate, managing 1.3 billion square feet across 20 countries. Its strategic emphasis on Last Touch® facilities near major urban centers ensures superior delivery speed and consistently high tenant demand, reflected in its 96%+ occupancy and strong lease mark-to-market gains of approximately 30%. This positions the company for steady, organic growth with a structurally embedded advantage. Adding to its defensible moat, Prologis controls a vast and irreplaceable land pipeline capable of supporting $41.5 billion in future logistics development, including $0.9 billion earmarked for data center conversions. In a landscape where urban zoning restrictions create meaningful entry barriers, this land bank offers long-term development flexibility and competitive protection. Operationally, the company benefits from immense scale while maintaining a lean cost structure. Its general and administrative expense ratio continues to decline as its asset base expands, allowing it to boost margins by leveraging shared infrastructure and partnerships. A critical driver of Prologis's financial engine is its capital flywheel—$56.3 billion in co-investment ventures where it earns recurring fees and performance-based incentives with only modest equity exposure of 15–55%, significantly reducing risk while enhancing returns. Most of these ventures are either long-duration or open-ended, ensuring lasting capital support. Further reinforcing tenant relationships, its Prologis Essentials platform integrates sustainability solutions like LED lighting and solar installations (626 MW deployed), now embedded in all eligible new developments. This ecosystem of ESG-driven value-add services enhances tenant retention and underscores Prologis's comprehensive, multi-pronged strategy for long-term, capital-efficient growth. For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of this on Harley Davidson, Inc. (HOG). Prologis, Inc. (PLD) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held PLD at the end of the first quarter which was 55 in the previous quarter. While we acknowledge the potential of PLD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
05-06-2025
- Business
- Globe and Mail
Better High-Yield Dividend Stock to Buy Now: Pfizer vs. Prologis
Investors looking for sources of passive income to fuel their retirement dreams face a dilemma. Should you chase high yields from slow-growing businesses or invest in lower-yield providers with more predictable cash flows? Lately, Pfizer (NYSE: PFE) and Prologis (NYSE: PLD) have been perfect examples of the trade-off between attractive yields and dividend growth. Pfizer offers a sky-high yield that's climbing slowly. Prologis offers a much lower yield, but it's been raising its payout at a remarkable pace. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Here's a closer look at both to help you decide which one fits your goals. Pfizer Shares of Pfizer have fallen about 62% from their COVID-19 pandemic highs. The stock is way down, but the company has raised its payout every year since 2009. At its beaten-down price, this stock offers an eye-popping 7.3% dividend yield. Pfizer's COVID-19 vaccine, Comirnaty, and antiviral treatment, Paxlovid, drove adjusted earnings up to $6.58 per share in 2022. Sinking demand for COVID-19 vaccines and treatments reduced adjusted earnings to just $3.11 per share last year. In 2025, Pfizer expects a significant earnings contraction. At the midpoint of the guided range management provided this April, adjusted earnings are expected to fall by 6.8% this year. The $2.80 per share management expects at the low end of the guided range is more than enough to support a dividend payout currently set at an annualized $1.72 annually, but there could be further contractions ahead. Eliquis is a next-generation blood thinner that Pfizer markets in collaboration with Bristol Myers Squibb. It's currently responsible for 14% of Pfizer's total revenue and is likely to lose ground to generic competition in the lucrative U.S. market in 2028. Long before Eliquis loses ground to generic competition, the company's lead growth driver, Vyndaquel, could stumble. BridgeBio launched a competing treatment called Attruby in late 2024, and it's been exceeding expectations. Pfizer's facing patent cliffs, but it also has one of the most productive development pipelines in the industry. Last year alone, the Food and Drug Administration issued more than a dozen approvals to new Pfizer treatments and several that are already on the market. With plenty of new products to market, the drugmaker has a good chance to continue its payout-raising streak in the decade ahead. Prologis As more folks do their shopping online, demand for warehouses that can support e-commerce has soared. By anticipating the demand, Prologis has become the world's largest real estate investment trust (REIT) that everyday investors can buy shares of. Fear and uncertainty regarding the taxes businesses need to pay when importing goods to the U.S. have pressured the stock. It's down about 12% from a peak it set in March. At its beaten-down price, it offers a 3.7% yield. Prologis has been able to raise its dividend by 11.7% annually over the past five years. At this pace, investors who buy at recent prices could begin receiving a double-digit yield on cost in less than a decade. Amazon, Home Depot, and FedEx are Prologis' largest customers. These three tenants are responsible for only 8.2% of the rent payments Proligis receives every month. This high level of diversification is a big reason it can boast industry-leading credit ratings. With an A2 rating from Moody's and an A rating from S&P Global, the weighted average interest rate on Prologis' outstanding debts was just 3.1% at the end of March. Acquiring and developing properties is an important part of this REIT's business, but it also acts as a lender. With an enviable credit rating, it can produce a strong profit while offering rates that its smaller competitors can't match. For companies that own their warehouses, selling them to Prologis and leasing them back is often their lowest-cost source of capital. With the vast majority of the world's logistics real estate still owned by the companies that use it, Prologis could continue growing at a rapid pace for decades to come. Pfizer offers a yield that's almost twice as high as Prologis's, but the pharmaceutical giant has been raising its payout at less than half the pace of the logistics REIT. Pfizer might be a good option for folks near retirement age. For income-seeking investors, though, Prologis seems like the better dividend stock to buy now. Should you invest $1,000 in Prologis right now? Before you buy stock in Prologis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Prologis wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Cory Renauer has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Bristol Myers Squibb, FedEx, Home Depot, Moody's, Pfizer, Prologis, and S&P Global. The Motley Fool recommends BridgeBio Pharma and recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy.
Yahoo
04-06-2025
- Business
- Yahoo
Here's Why Prologis (PLD) Gained But Lagged the Market Today
Prologis (PLD) closed the latest trading day at $109.02, indicating a +0.25% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.58%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.81%. The industrial real estate developer's shares have seen an increase of 3.25% over the last month, surpassing the Finance sector's gain of 2.5% and falling behind the S&P 500's gain of 4.61%. Analysts and investors alike will be keeping a close eye on the performance of Prologis in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.41, marking a 5.22% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2 billion, indicating a 7.88% growth compared to the corresponding quarter of the prior year. PLD's full-year Zacks Consensus Estimates are calling for earnings of $5.71 per share and revenue of $8.09 billion. These results would represent year-over-year changes of +2.7% and +7.65%, respectively. Any recent changes to analyst estimates for Prologis should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.22% lower. At present, Prologis boasts a Zacks Rank of #3 (Hold). In terms of valuation, Prologis is currently trading at a Forward P/E ratio of 19.06. This expresses a premium compared to the average Forward P/E of 11.01 of its industry. Also, we should mention that PLD has a PEG ratio of 2.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.41 at yesterday's closing price. The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 37% echelons of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions. 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 Prologis, Inc. (PLD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
