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Sabra (SBRA) Stock Jumps 5.5%: Will It Continue to Soar?

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Sabra Healthcare (SBRA - Free Report) shares ended the last trading session 5.5% higher at $13.20. 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 16.9% loss over the past four weeks.

The increased optimism can be attributed to recovering industry fundamentals. Also, it stems from investors’ favorable view on the industry amid an anticipation that the Fed could adopt a reverse course of action with respect to interest rates, if economic trends tip into a deep-recession mode in the future.

This health care real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.38 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $157.48 million, up 22.5% 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 Sabra, the consensus FFO per share estimate for the quarter has been revised 0.7% 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 SBRA 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 >>>>

Sabra belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, CareTrust REIT (CTRE - Free Report) , closed the last trading session 2.8% higher at $18.21. Over the past month, CTRE has returned -17.4%.

For CareTrust REIT, the consensus FFO per share estimate for the upcoming report has changed -1.7% over the past month to $0.38. This represents no change from what the company reported a year ago. CareTrust REIT currently has a Zacks Rank of #3 (Hold).


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