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Strength Seen in Host Hotels (HST): Can Its 5% Jump Turn into More Strength?

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Host Hotels (HST - Free Report) shares rallied 5% in the last trading session to close at $16.55. 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 11.8% 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 lodging real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.40 per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $1.19 billion, up 40.9% 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 Host Hotels, 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. So, make sure to keep an eye on HST 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 >>>>

Host Hotels is part of the Zacks REIT and Equity Trust - Other industry. Corporate Office Properties (OFC - Free Report) , another stock in the same industry, closed the last trading session 2.2% higher at $23.59. OFC has returned -12.4% in the past month.

For Corporate Office Properties, the consensus FFO per share estimate for the upcoming report has changed +0.3% over the past month to $0.58. This represents a change of +1.8% from what the company reported a year ago. Corporate Office Properties currently has a Zacks Rank of #2 (Buy).


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