Prologis, Inc. (PLD), San Francisco, California, is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. With a market cap of $112.9 billion, the company leases modern distribution facilities to customers, including manufacturers, retailers, transportation companies, third-party logistics providers, and other enterprises.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and PLD perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the REIT - industrial industry.
Despite its notable strength, PLD slipped 8.6% from its 52-week high of $135.76, achieved on Mar. 11, 2024. Over the past three months, PLD stock has gained 9%, outperforming the Real Estate Select Sector SPDR Fund’s (XLRE) marginal losses during the same time frame.
In the longer term, shares of PLD rose 17.4% on a YTD basis, outperforming XLRE’s YTD gains of 6.8%. However, the stock dipped 6.3% over the past 52 weeks, underperforming XLRE’s 10% returns over the last year.
However, PLD has been trading above its 50-day and 200-day moving averages since mid-January, with slight fluctuations.
On Jan. 21, PLD shares closed up more than 7% after reporting its Q4 results. Its core FFO of $1.50 surpassed Wall Street estimates of $1.38. The company’s revenue grew 16.5% year over year to $2.2 billion. PLD expects full-year core FFO in the range of $5.65 to $5.81.
In the competitive arena of REIT - industrial, First Industrial Realty Trust, Inc. (FR) has taken the lead over PLD, showing resilience with a 9.7% uptick over the past 52 weeks but lagged behind the stock with a 15.7% gain on a YTD basis.
Wall Street analysts are moderately bullish on PLD’s prospects. The stock has a consensus “Moderate Buy” rating from the 24 analysts covering it, and the mean price target of $130.57 suggests a potential upside of 5.3% from current price levels.
