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Creative Media & Community Trust (CMCT) Moves 21.5% Higher: Will This Strength Last?
Creative Media & Community Trust Corporation (CMCT - Free Report) shares soared 21.5% in the last trading session to close at $5.14. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6% loss over the past four weeks.
The increased optimism in the stock is attributable to the rebound in the United States office real estate market.
This real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.15 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $26.03 million, up 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 Creative Media & Community Trust, the consensus FFO per share estimate for the quarter has been revised 17.7% 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 CMCT 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 >>>>
Creative Media & Community Trust belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, EastGroup Properties (EGP - Free Report) , closed the last trading session 1.7% higher at $161.72. Over the past month, EGP has returned 0.3%.
For EastGroup Properties, the consensus FFO per share estimate for the upcoming report has changed +0.5% over the past month to $1.82. This represents a change of +8.3% from what the company reported a year ago. EastGroup Properties currently has a Zacks Rank of #2 (Buy).