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Service Properties (SVC) Soars 8.3%: Is Further Upside Left in the Stock?
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Service Properties (SVC - Free Report) shares soared 8.3% in the last trading session to close at $5.23. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 21.6% loss over the past four weeks.
This increased optimism reflects the recovering fundamentals of the overall lodging industry.
This real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.34 per share in its upcoming report, which represents a year-over-year change of +112.5%. Revenues are expected to be $484.41 million, up 28.9% 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 Service Properties, the consensus FFO per share 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 FFO estimate revisions. So, make sure to keep an eye on SVC going forward to see if this recent jump can turn into more strength down the road.
Service Properties is a member of the Zacks REIT and Equity Trust - Other industry. One other stock in the same industry, LTC Properties (LTC - Free Report) , finished the last trading session 0.5% higher at $38.91. LTC has returned 0.6% over the past month.
LTC's consensus FFO per share estimate for the upcoming report has remained unchanged over the past month at $0.63. Compared to the company's year-ago FFO per share, this represents a change of +10.5%. LTC currently boasts a Zacks Rank of #2 (Buy).
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Service Properties (SVC) Soars 8.3%: Is Further Upside Left in the Stock?
Service Properties (SVC - Free Report) shares soared 8.3% in the last trading session to close at $5.23. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 21.6% loss over the past four weeks.
This increased optimism reflects the recovering fundamentals of the overall lodging industry.
This real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.34 per share in its upcoming report, which represents a year-over-year change of +112.5%. Revenues are expected to be $484.41 million, up 28.9% 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 Service Properties, the consensus FFO per share 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 FFO estimate revisions. So, make sure to keep an eye on SVC 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 >>>>
Service Properties is a member of the Zacks REIT and Equity Trust - Other industry. One other stock in the same industry, LTC Properties (LTC - Free Report) , finished the last trading session 0.5% higher at $38.91. LTC has returned 0.6% over the past month.
LTC's consensus FFO per share estimate for the upcoming report has remained unchanged over the past month at $0.63. Compared to the company's year-ago FFO per share, this represents a change of +10.5%. LTC currently boasts a Zacks Rank of #2 (Buy).