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Jones Lang LaSalle (JLL) Surges 3.3%: Is This an Indication of Further Gains?

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Jones Lang LaSalle (JLL - Free Report) shares soared 3.3% in the last trading session to close at $205.47. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.8% loss over the past four weeks.

This increased optimism stems from a recovery in investor sentiment. Particularly, the acceleration of vaccination programs as well as government stimulus packages across the globe have set the stage for the rebound, with anticipations of decent growth in the rest of 2021, as pent-up demand begins to resurface.

In fact, the company’s Capital Markets team recently announced that it has closed the $435-million sale and $282.75-million financing for the Palomino Park Apartments located in the Highlands Ranch submarket of Southeast Denver. Importantly, the purchase price for this 1,184-unit, upscale apartment community makes the sale the largest single-asset apartment transaction in Colorado's history.

This financial and professional services company is expected to post quarterly earnings of $1.37 per share in its upcoming report, which represents a year-over-year change of +95.7%. Revenues are expected to be $3.94 billion, up 7.2% 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 Jones Lang LaSalle, 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 JLL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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