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Macerich (MAC) Moves 5.7% Higher: Will This Strength Last?

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Macerich (MAC - Free Report) shares rallied 5.7% in the last trading session to close at $8.17. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.7% 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 shopping center real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.47 per share in its upcoming report, which represents a year-over-year change of +4.4%. Revenues are expected to be $215.08 million, up 1.4% 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 Macerich, the consensus FFO per share estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. And a negative trend in FFO estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MAC 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 >>>>

Macerich is part of the Zacks REIT and Equity Trust - Retail industry. Store Capital (STOR - Free Report) , another stock in the same industry, closed the last trading session 0.9% higher at $31.90. STOR has returned 16.5% in the past month.

For Store Capital, the consensus FFO per share estimate for the upcoming report has changed +1.6% over the past month to $0.57. This represents a change of +14% from what the company reported a year ago. Store Capital currently has a Zacks Rank of #2 (Buy).


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