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ACRES Commercial (ACR) Gains But Lags Market: What You Should Know

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ACRES Commercial (ACR - Free Report) closed the most recent trading day at $9.39, moving +0.32% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.29%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 10.96%.

Coming into today, shares of the commercial real estate investment trust had lost 0.85% in the past month. In that same time, the Finance sector gained 2.67%, while the S&P 500 lost 0.23%.

ACRES Commercial will be looking to display strength as it nears its next earnings release. On that day, ACRES Commercial is projected to report earnings of $0.45 per share, which would represent year-over-year growth of 104.55%. Our most recent consensus estimate is calling for quarterly revenue of $12.2 million, up 2.61% from the year-ago period.

Investors should also note any recent changes to analyst estimates for ACRES Commercial. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ACRES Commercial is currently a Zacks Rank #1 (Strong Buy).

Investors should also note ACRES Commercial's current valuation metrics, including its Forward P/E ratio of 5.03. Its industry sports an average Forward P/E of 7.63, so we one might conclude that ACRES Commercial is trading at a discount comparatively.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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