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Strength Seen in Colliers International (CIGI): Can Its 5.6% Jump Turn into More Strength?

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Colliers International (CIGI - Free Report) shares rallied 5.6% in the last trading session to close at $115.65. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.2% gain over the past four weeks.

This increased optimism can be attributed to the company’s better-than-anticipated first-quarter 2021 results, which were backed by the recent acquisitions, strong capital markets activity and cost-saving efforts. The market is also upbeat about the company as it raised the financial outlook for 2021 following the outstanding results and encouraging indications of momentum for the rest of the year.

Price and Consensus

Price Consensus Chart for CIGI

This commercial real estate services provider is expected to post quarterly earnings of $0.64 per share in its upcoming report, which represents a year-over-year change of +18.5%. Revenues are expected to be $678.7 million, up 7.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Colliers International, 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 CIGI 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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