Back to top

Image: Bigstock

Strength Seen in Paramount Group (PGRE): Can Its 5.5% Jump Turn into More Strength?

Read MoreHide Full Article

Paramount Group (PGRE - Free Report) shares rallied 5.5% in the last trading session to close at $6.33. 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 14.5% loss over the past four weeks.

The increased optimism in the stock is attributable to the ongoing recovery in the United States office real estate market.

This real estate investment trust that owns office buildings is expected to post quarterly funds from operations (FFO) of $0.24 per share in its upcoming report, which represents a year-over-year change of +4.4%. Revenues are expected to be $179.95 million, up 0.5% 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 Paramount Group, 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 PGRE 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 >>>>

Paramount Group is a member of the Zacks REIT and Equity Trust - Other industry. One other stock in the same industry, Hudson Pacific Properties (HPP - Free Report) , finished the last trading session 2.7% higher at $10.55. HPP has returned -25.2% over the past month.

For Hudson Pacific, the consensus FFO per share estimate for the upcoming report has changed -1.3% over the past month to $0.51. This represents a change of +2% from what the company reported a year ago. Hudson Pacific currently has a Zacks Rank of #3 (Hold).

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Hudson Pacific Properties, Inc. (HPP) - free report >>

Paramount Group, Inc. (PGRE) - free report >>

Published in