We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Store Capital (STOR) Moves 19.9% Higher: Will This Strength Last?
Read MoreHide Full Article
STORE Capital shares soared 19.9% in the last trading session to close at $32.12. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.7% loss over the past four weeks.
The increased optimism stems from the recently announced deal, wherein STORE Capital will be acquired by GIC, a global institutional investor, and Oak Street, a division of Blue Owl, in an all-cash transaction valued at around $14 billion.
The transaction is expected to close in first-quarter 2023, subject to the approval of STORE Capital’s shareholders and certain other customary conditions.
Per the agreement, STOR’s shareholders will receive $32.25 per share in cash, reflecting a premium of 20.4% to the company’s closing price as of Sep 14, 2022.
This retail real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.56 per share in its upcoming report, which represents a year-over-year change of +12%. Revenues are expected to be $215.15 million, up 16.9% 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. However, as STOR rallied to end the last trading session at $32.12, a little lower than what GIC and Oak Street have offered, there is a marginal upside in the stock.
For Store Capital, the consensus FFO per share estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. And a positive trend in FFO estimate revision usually translates into price appreciation.
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 >>>> Store Capital is part of the Zacks REIT and Equity Trust - Retail industry. Urban Edge Properties (UE - Free Report) , another stock in the same industry, closed the last trading session 1.4% lower at $15.28. UE has returned -9.2% in the past month.
For Urban Edge Properties, the consensus FFO per share estimate for the upcoming report has changed +1.7% over the past month to $0.30. This represents a change of +7.1% from what the company reported a year ago. Urban Edge Properties currently has a Zacks Rank of #3 (Hold).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Store Capital (STOR) Moves 19.9% Higher: Will This Strength Last?
STORE Capital shares soared 19.9% in the last trading session to close at $32.12. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.7% loss over the past four weeks.
The increased optimism stems from the recently announced deal, wherein STORE Capital will be acquired by GIC, a global institutional investor, and Oak Street, a division of Blue Owl, in an all-cash transaction valued at around $14 billion.
The transaction is expected to close in first-quarter 2023, subject to the approval of STORE Capital’s shareholders and certain other customary conditions.
Per the agreement, STOR’s shareholders will receive $32.25 per share in cash, reflecting a premium of 20.4% to the company’s closing price as of Sep 14, 2022.
This retail real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.56 per share in its upcoming report, which represents a year-over-year change of +12%. Revenues are expected to be $215.15 million, up 16.9% 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. However, as STOR rallied to end the last trading session at $32.12, a little lower than what GIC and Oak Street have offered, there is a marginal upside in the stock.
For Store Capital, the consensus FFO per share estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. And a positive trend in FFO estimate revision usually translates into price appreciation.
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 >>>>
Store Capital is part of the Zacks REIT and Equity Trust - Retail industry. Urban Edge Properties (UE - Free Report) , another stock in the same industry, closed the last trading session 1.4% lower at $15.28. UE has returned -9.2% in the past month.
For Urban Edge Properties, the consensus FFO per share estimate for the upcoming report has changed +1.7% over the past month to $0.30. This represents a change of +7.1% from what the company reported a year ago. Urban Edge Properties currently has a Zacks Rank of #3 (Hold).