Realty Income (O) Stock: Buy, Sell, or Hold?

O - Realty Income Corporation

REAL ESTATE INVESTMENT TRUSTS
$56.89
-0.17 (-0.30%) ▼
5d: +1.44%
30d: +2.67%
90d: -13.15%
BUY
MODERATE Confidence
Analysis Updated: Oct 23, 2026 12:00 AM ET
Earnings: Nov 02, 2026 9d
Smart Money Distribution

Options positioning is turning defensive after a sharp run-up - a pattern consistent with institutional profit-taking. View Scanner →

Signal fired Oct 19, 2026 at $55.51 · last confirmed Oct 19, 2026

Strength: 4.9/10

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
💡 BUY OPPORTUNITY: O shows positive signals but monitor for confirmation. Market pricing in 0.0% annual growth which appears achievable. Moderate conviction.
See Forward Earnings Fair Value & Price Prediction →
O is flagged by 1 backtest-validated scanner today

SPY Bullish (stocks from this scanner have beaten SPY by a median 0.37% over the next 20 trading days; O has been on it 1 day). Backtested on 8 months of scanner history vs the S&P 500, as of 2026-10-23.

See all of today's Best Signals in the free scanner →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$46.11
Based on 3.5% avg growth
INTRINSIC VALUE TODAY
$28.63
Trading above historical range

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: O is currently trading at $56.89, which is considered slightly high relative to its 30-day fair value range of $54.20 to $57.04. The stock's valuation (Forward PE: 36.6) is in line with its historical norms (36.6). At these levels, the market is pricing in 0.0% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.

Technical Outlook: Technically, O is in a strong downtrend. The price is approaching resistance at $57.35. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.

Market Sentiment: O scores 66/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $64.63 (+13.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position SLIGHTLY HIGH
Historical Trading Range $54.20 - $57.04
Company Quality Score 60/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 74.8%

All Signals

  • BULLISH: Strong technical setup (66/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading below Wall St target ($64.63)
  • NEUTRAL: Market pricing in 0.0% annual earnings growth - fairly valued
  • BULLISH: Bottoming setup score 66/100 — corrected, stabilizing, and turning up

Trading Range Analysis

30-Day Trading Range $54.20 - $57.04
Current vs Trading Range SLIGHTLY HIGH

Support & Resistance Levels

Support Level $53.90
Resistance Level $57.36
Current Trend Strong Downtrend
Technical data as of Oct 23, 2026

Fundamental Context

Forward P/E (Next Year Est.) 36.63
Wall Street Target $64.63 (+13.6%)
Revenue Growth (YoY) 9.6%
Earnings Growth (YoY) 69.2%
Profit Margin 20.9%
PE vs Historical 36.6 vs 36.6 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): 0% (market-implied from PE analysis)
1-Year Target $56.89 (0%)
2-Year Target $56.89 (0%)
3-Year Target $56.89 (0%)
3-Yr Target (if PE normalizes) (PE: 37→37) PE COMPRESSION $56.84 (0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 36.6, Growth: 3.0%) $62.21 (+9%)
Base: (SPY PE: 19.9, Growth: 3.0%) $33.73 (-41%)
Bear: (PE: 16.9, Growth: 3.0%) $28.67 (-50%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (41x PE), but valuation improves significantly next year (37x PE) as earnings recover.
Trailing PE: 41.35 | Current EPS (TTM): $1.38
Bull Case $70.63 (+24%)
Analyst growth 12.5%, PE expands to 45.5
Base Case $64.21 (+13%)
Market implied 12.5%, PE stable at 41.4
Bear Case $38.80 (-32%)
Severe decline -20.0%, PE contracts to 35.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
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Last updated: October 23, 2026 6:35 PM ET
Data refreshes hourly during market hours. Next update: 7:35 PM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL

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