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Strength Seen in Centerspace (CSR): Can Its 3.4% Jump Turn into More Strength?

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Centerspace (CSR - Free Report) shares soared 3.4% in the last trading session to close at $101.50. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.3% loss over the past four weeks.

This increased optimism stems from the favorable fundamentals of its markets and its capacity to leverage the growth potential, particularly in the Minneapolis MSA. Also, its operation updates for January and February reveal strong leasing trends with high occupancy and solid rental rate growth.

This real estate investment trust is expected to post quarterly funds from operations (FFO) of $1.04 per share in its upcoming report, which represents a year-over-year change of +9.5%. Revenues are expected to be $59.06 million, up 26.6% from the year-ago quarter.

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

For Centerspace, the consensus FFO per share estimate for the quarter has been revised 1% 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 CSR 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 >>>>

Centerspace is a member of the Zacks REIT and Equity Trust - Residential industry. One other stock in the same industry, UMH Properties (UMH - Free Report) , finished the last trading session 0.7% higher at $24.75. UMH has returned 2.8% over the past month.

For UMH, the consensus FFO per share estimate for the upcoming report has remained unchanged over the past month at $0.23. This represents a change of +15% from what the company reported a year ago. UMH currently has a Zacks Rank of #3 (Hold).


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