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Strength Seen in AFC Gamma Inc. (AFCG): Can Its 7.8% Jump Turn into More Strength?

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AFC Gamma Inc. (AFCG - Free Report) shares soared 7.8% in the last trading session to close at $14.16. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1% loss over the past four weeks.

Better-than-expected second-quarter earnings have put mREIT stocks in the spotlight. Also, with the economy and consumer confidence seeming on a decent footing, and expectations of cooling inflation, the outlook for commercial real estate lending has improved. A favorable investment environment and lending activity pullback by banks have also offered additional scope for companies like AFC Gamma. Hence, investors became bullish on the stock.

This company is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of -20.3%. Revenues are expected to be $20.6 million, down 4.9% 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 AFC Gamma Inc., 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 AFCG 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 >>>>

AFC Gamma Inc. is a member of the Zacks REIT and Equity Trust industry. One other stock in the same industry, Great Ajax (AJX - Free Report) , finished the last trading session 0.4% lower at $7.03. AJX has returned 23.9% over the past month.

Great Ajax's consensus EPS estimate for the upcoming report has changed -20% over the past month to -$0.01. Compared to the company's year-ago EPS, this represents a change of -104%. Great Ajax currently boasts a Zacks Rank of #5 (Strong Sell).


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