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Century Communities (CCS) Moves 13.1% Higher: Will This Strength Last?

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Century Communities, Inc. (CCS - Free Report) shares ended the last trading session 13.1% higher at $74.94. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 9.9% gain over the past four weeks.

Share price of this homebuilder got a boost after it posted impressive first-quarter 2021 results. Earnings and revenues beat the consensus mark and also increased from the year-ago level. Total revenues increased 67% to a record $1 billion. Home deliveries jumped 50% to a first-quarter record. Net new home contracts and homes in backlog jumped 45% and 58%, respectively, to company records. Importantly, earnings surged 284.6% year over year to $3.00 per share. Moreover, the company lifted 2021 revenue guidance to a range of $3.7 billion to $4.0 billion and home deliveries to a range of 10,750 to 11,750.

Price and Consensus

Price Consensus Chart for CCS

This single-family homebuilder is expected to post quarterly earnings of $1.90 per share in its upcoming report, which represents a year-over-year change of +57%. Revenues are expected to be $857.43 million, up 10.4% from the year-ago quarter.

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

For Century Communities, the consensus EPS 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 earnings estimate revisions. So, make sure to keep an eye on CCS 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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