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Landsea Homes Corporation (LSEA) Soars 6.1%: Is Further Upside Left in the Stock?

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Landsea Homes Corporation (LSEA - Free Report) shares rallied 6.1% in the last trading session to close at $9.34. 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 17.2% gain over the past four weeks.

Landsea Homes' stock is gaining from solid acquisition and product differentiation strategy.

This company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of -69%. Revenues are expected to be $247.56 million, down 32.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Landsea Homes Corporation, the consensus EPS 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 earnings estimate revisions. So, make sure to keep an eye on LSEA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Landsea Homes Corporation belongs to the Zacks Building Products - Home Builders industry. Another stock from the same industry, D.R. Horton (DHI - Free Report) , closed the last trading session 1.1% higher at $121.69. Over the past month, DHI has returned 10.9%.

D.R. Horton's consensus EPS estimate for the upcoming report has changed +1.1% over the past month to $2.80. Compared to the company's year-ago EPS, this represents a change of -40%. D.R. Horton currently boasts a Zacks Rank of #3 (Hold).

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