Back to top

Image: Bigstock

RLJ Lodging (RLJ) Soars 7%: Is Further Upside Left in the Stock?

Read MoreHide Full Article

RLJ Lodging (RLJ - Free Report) shares ended the last trading session 7% higher at $11.21. 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 21.7% loss over the past four weeks.

This increased optimism is backed by the rebounding fundamentals of the lodging industry, with strong leisure demand and improving levels of corporate and group demand across its markets, and its capacity to leverage growth potential.

This hotel real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.42 per share in its upcoming report, which represents a year-over-year change of +500%. Revenues are expected to be $322.71 million, up 66.1% 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 RLJ Lodging, the consensus FFO per share estimate for the quarter has been revised 3.1% 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 RLJ 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 >>>>

RLJ Lodging is part of the Zacks REIT and Equity Trust - Other industry. Lamar Advertising (LAMR - Free Report) , another stock in the same industry, closed the last trading session 1.1% higher at $92.09. LAMR has returned -5.1% in the past month.

Lamar's consensus FFO per share estimate for the upcoming report has remained unchanged over the past month at $1.79. Compared to the company's year-ago FFO per share, this represents a change of +2.3%. Lamar currently boasts a Zacks Rank of #3 (Hold).

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Lamar Advertising Company (LAMR) - free report >>

RLJ Lodging Trust (RLJ) - free report >>

Published in