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Federal Realty Investment Trust (FRT) Surges 4.1%: Is This an Indication of Further Gains?

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Federal Realty Investment Trust (FRT - Free Report) shares soared 4.1% in the last trading session to close at $116.84. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.3% loss over the past four weeks.

This increased optimism stems from a recovery in investor sentiment for the broader asset category with dips offering solid entry points for retail REITs like Federal Realty enjoying healthy fundamentals.

This real estate investment trust is expected to post quarterly funds from operations (FFO) of $1.16 per share in its upcoming report, which represents a year-over-year change of +50.7%. Revenues are expected to be $219.86 million, up 24.8% 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 Federal Realty Investment Trust, the consensus FFO per share estimate for the quarter has been revised 2.5% higher over the last 30 days to the current level. And a positive trend in FFO estimate revision usually translates into price appreciation. So, make sure to keep an eye on FRT 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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