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Essential Properties (EPRT) Moves 5% Higher: Will This Strength Last?

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Essential Properties (EPRT - Free Report) shares soared 5% in the last trading session to close at $23.76. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.9% gain over the past four weeks.

Restrictions on social distancing being lifted or relaxed across the majority of the company’s markets are likely to bolster rent collections and are driving shares of Essential Properties. Also, its footprint in the fast-growing Sunbelt states offers reasons to be optimistic about the stock.

This company is expected to post quarterly FFO of $0.29 per share in its upcoming report, which represents a year-over-year change of +93.3%. Revenues are expected to be $47.05 million, up 13.4% from the year-ago quarter.

While FFO and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in FFO estimate revisions and near-term stock price movements.

For Essential Properties, the consensus FFO estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in FFO estimate revisions. So, make sure to keep an eye on EPRT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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