San Francisco, California-based Prologis, Inc. (PLD) is the global leader in logistics real estate, focusing on high-barrier, high-growth markets. With a market cap of $118.3 billion, Prologis leases modern logistics facilities to a diverse base of customers, principally across business-to-business and retail/online fulfillment categories.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Prologis fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the industrial REIT industry. Prologis operations span various countries across North America, Latin America, Europe, and Asia.
PLD shares dipped 7.1% from its 52-week high of $137.52, which they achieved on Dec. 14, 2023. Nevertheless, PLD gained 19.5% over the past three months, considerably outpacing the Dow Jones Industrials Average’s ($DOWI) 6.1% gains during the same time frame.
However, in the longer term, PLD has underperformed DOWI. PLD stock gained 3% over the past year and declined 3.7% in 2024, trailing behind DOWI’s 17.5% gains over the past 52 weeks and 8.6% returns on a YTD basis.
To confirm the recent bullish trend, PLD has been trading above its 50-day moving average since mid-June and above its 200-day moving average since mid-July.
The company has shown impressive resilience in the past months. Despite the changing market dynamics, geopolitical tensions, currency fluctuations, and high interest rates, it reported better-than-expected funds from operations (FFO). The company has also maintained a solid 96.1% average occupancy rate in the previous quarter, demonstrating its operational efficiency.
Although the company’s total revenue saw a year-over-year decline of 18.1% to $2 billion in Q2 due to the fall in strategic capital revenues from $799 million in the year-ago quarter to $155 million, its rental and other revenues grew 12.2% to $1.9 billion. Additionally, Prologis’ FFO per share of $1.34 marginally exceeded the consensus estimate.
Prologis’ competitor, EastGroup Properties, Inc. (EGP), has outperformed PLD. EGP gained 3.7% over the past 52 weeks and 1.4% in 2024.Among the 22 analysts covering the PLD stock, the consensus rating is a “Moderate Buy.” The mean price target of $135.37 represents a potential upside of 5.5% from current price levels.
On the date of publication, Aditya Sarawgi 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.
