Realty Income Corporation (O) Stock Analysis
Score AReit · Grade B · Bullish
$62.14
$65.27
+5.0%
6/10
B
Reit
Investment Thesis
Good opportunity: Solid company with good risk/reward at 8.5:1.
For New Investors
Quantitative score: high
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
REIT Fair Value: $65.27 (+5.0%). FFO/share: $3.90, P/FFO: 15.9x vs sector avg 16.0x.
PEG-Based EPS
$62.44
FCF DCF Model
$69.53
Blended Fair Value
$65.27
Methods
REIT P/FFO Relative, REIT Dividend Discount
Quality Analysis
75/120 points
Investable (REIT)
Quality Flags
- REIT quality screen: FFO-based metrics used instead of standard ROE/ROIC/D/E
- No dividend data available
Market Sentiment
Wall Street Consensus
$68.00
+9.4% Upside
20 analysts
Range: $60.00 — $69.00
Rating: Buy
Our model aligns with Wall Street consensus.
Trend & Technical
Price ($62.12) is 4.9% above SMA 200 ($59.20). Bullish trend confirmed.
Tech Score 73/100 — Strong technical setup. Trend, momentum, and positioning aligned bullish.
Risk & Reward
Asymmetry Ratio
8.50:1
Expected Return
+36.0%
Bull Upside
+85.1%
Bear Downside
-10.0%
Excellent asymmetry: 8.50:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of O?
Based on our multi-method conviction analysis, the estimated fair value of Realty Income Corporation (O) is $65.27. This is calculated by blending REIT P/FFO Relative, REIT Dividend Discount and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is moderate.
Is O a buy, sell, or hold?
O currently has a BUY rating with a conviction score of 6/10. Good opportunity: Solid company with good risk/reward at 8.5:1. Quantitative score: high.
Is O a high-quality stock?
Realty Income Corporation has a quality grade of B (75/120 points), rated as Investable (REIT). Key metrics include ROE of —%, ROIC-WACC spread of —%, and D/E ratio of —x.
What type of stock is O?
O is classified as a "reit" in our framework. REIT classification: Real Estate / REIT - Retail
What do Wall Street analysts say about O?
20 Wall Street analysts have a consensus price target of $68.00 for O, representing +9.4% upside. Targets range from $60.00 to $69.00. The consensus recommendation is "Buy". Our model aligns with Wall Street consensus.
What are the risks of investing in O?
The risk/reward asymmetry ratio for O is 8.50:1, rated as Very Favorable. Excellent asymmetry: 8.50:1 ratio. Upside significantly outweighs downside. The expected return is +36.0%, with bull case upside of +85.1% and bear case downside of -10.0%.
What is the current trend for O?
O is in a bullish trend. Price ($62.12) is 4.9% above SMA 200 ($59.20). Bullish trend confirmed. The technical score is 73/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.