Vornado (VNO) Up 1.2% Since Last Earnings Report: Can It Continue?

Vornado (VNO) shares have risen 1.2% since its last earnings report, underperforming the S&P 500, with estimates trending downward and a Zacks Rank #3 (Hold) suggesting an in-line return in the near term. Vornado's VGM scores are subpar, with an aggregate score of F. In comparison, Boston Properties (BXP), a peer in the same industry, has gained 10% over the past month, reporting a 2.9% year-over-year increase in revenues for the quarter ended March 2025, but a decrease in EPS.

Analysis

Vornado Realty Trust (VNO) has experienced a modest share price increase of 1.2% since its last earnings report, a performance that trails the broader S&P 500. This slight uptick contrasts with a discernible downward trend in analyst estimate revisions for the company. Vornado's fundamental metrics appear weak, as indicated by its subpar VGM Scores: a 'D' for Growth, an 'F' for Momentum, and a 'D' for Value, culminating in an overall aggregate VGM Score of 'F'. Despite these indicators, Vornado holds a Zacks Rank #3 (Hold), suggesting expectations for an in-line market return in the near term. Comparatively, industry peer Boston Properties (BXP) has demonstrated stronger recent stock performance, gaining 10% over the past month. Boston Properties reported a 2.9% year-over-year increase in revenues to $811.1 million for the quarter ended March 2025, though its EPS for the same period fell significantly to $0.39 from $1.73 a year prior. Looking ahead, BXP is projected to post earnings of $1.68 per share for the current quarter, a 5.1% decrease year-over-year, and its Zacks Consensus Estimate has seen a -0.5% revision over the last 30 days. BXP also holds a Zacks Rank #3 (Hold) and possesses a VGM Score of 'D', indicating that while its stock has outperformed VNO recently, it too faces earnings pressure and mixed fundamental signals.

Key Decisions for Investors

• Given Vornado's underperformance relative to the S&P 500, negative estimate revisions, and weak VGM scores, investors should exercise caution and closely monitor upcoming earnings releases for any signs of fundamental improvement.
• The Zacks Rank #3 (Hold) for VNO suggests limited upside in the near term, warranting a neutral stance pending further catalysts or a significant shift in analyst sentiment.
• Investors considering exposure to the REIT and Equity Trust - Other industry should note the contrasting stock performance but similar earnings pressures and 'Hold' ratings for both VNO and BXP, indicating sector-wide challenges that may temper expectations.