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KE Hodlings (BEKE) Moves 12.6% Higher: Will This Strength Last?

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KE Holdings Inc. Sponsored ADR (BEKE - Free Report) shares ended the last trading session 12.6% higher at $16.84. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.3% gain over the past four weeks.

The increased optimism in the stock can be attributable to the favorable fundamentals for this asset category.

This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -74.4%. Revenues are expected to be $2.2 billion, down 25.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For KE Hodlings, 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 BEKE 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 >>>>

KE Hodlings belongs to the Zacks Real Estate - Operations industry. Another stock from the same industry, Offerpad Solutions Inc. (OPAD - Free Report) , closed the last trading session 4.3% higher at $7.58. Over the past month, OPAD has returned -1.1%.

Offerpad Solutions' consensus EPS estimate for the upcoming report has changed +37.5% over the past month to -$0.37. Compared to the company's year-ago EPS, this represents a change of +85.5%. Offerpad Solutions currently boasts a Zacks Rank of #2 (Buy).


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