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Forestar Group (FOR) Soars 6.1%: Is Further Upside Left in the Stock?

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Forestar Group (FOR - Free Report) shares rallied 6.1% in the last trading session to close at $37.07. 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 11.4% gain over the past four weeks.

The increased investor optimism in the stock can be attributed to the favorable operating environment.

This real estate and natural resources developer is expected to post quarterly earnings of $0.84 per share in its upcoming report, which represents a year-over-year change of +55.6%. Revenues are expected to be $345.6 million, up 14.6% 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 Forestar Group, 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 FOR going forward to see if this recent jump can turn into more strength down the road.

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

Forestar Group is a member of the Zacks Real Estate - Development industry. One other stock in the same industry, Green Brick Partners (GRBK - Free Report) , finished the last trading session 1.2% higher at $52.66. GRBK has returned 0.7% over the past month.

For Green Brick Partners, the consensus EPS estimate for the upcoming report has changed -7.7% over the past month to $1.50. This represents a change of +9.5% from what the company reported a year ago. Green Brick Partners currently has a Zacks Rank of #3 (Hold).

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