Prologis, Inc. (PLD) is the leading global provider of logistics real estate with a market cap of $103.3 billion. Based in San Francisco, the company owns and manages around 1.2 billion square feet of logistics facilities across 19 countries.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Prologis fits this criterion perfectly. Prologis excels in strategically locating logistics facilities near urban centers, capitalizing on high-demand areas to serve over 6,700 tenants in business and retail sectors worldwide.
However, the real estate investment trust has slipped 18.9% from its 52-week high of $137.52, achieved on Dec. 14. Shares of Prologis are down 16.8% over the past three months, underperforming the broader Nasdaq Composite's ($NASX) 8.3% gain over the same time frame.
Longer term, PLD is down 16.3% on a YTD basis, lagging behind the NASX's 15.5% gains. Moreover, shares of Prologis have declined 8% over the past 52 weeks, compared to NASX's 30.8% gains over the same time frame.
To confirm the bearish price trend, PLD has been trading below its 50-day moving average since mid-March and has remained below its 200-day moving average since mid-April.
Prologis has underperformed due to declining net absorption rates, weakened revenue streams from third-party asset management fees and development profits, and an anticipated tenant shift toward cost containment amid increased competition and economic uncertainty. Moreover, the stock fell 7.2% on April 17 following its Q1 earnings report as the company lowered its full-year forecast for core funds from operations due to a slowdown in freight demand and reduced occupancy expectations for its warehouses.
To emphasize the stock’s underperformance, rival American Tower Corporation (AMT) outperforms Prologis. Shares of American Tower have gained 3.2% over the past 52 weeks. Despite AMT stock having dipped 10.5% on a YTD basis, PLD’s loss in 2024 appears more pronounced.
Despite the stock’s underwhelming price action, analysts remain optimistic about its prospects. Among the 22 analysts covering the stock, there is a consensus rating of “Strong Buy,” and the mean price target of $131.47 is a premium of 17.8% to current levels.
On the date of publication, Sohini Mondal 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.
