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Simon Property (SPG) Surges 9.1%: Is This an Indication of Further Gains?

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Simon Property (SPG - Free Report) shares soared 9.1% in the last trading session to close at $153.18. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.1% loss over the past four weeks.

The increased investor optimism in the stock can be attributed to President Donald Trump’s recent announcement to put a 90-day pause on the reciprocal tariff for most countries.

This shopping mall real estate investment trust is expected to post quarterly funds from operations (FFO) of $2.90 per share in its upcoming report, which represents a year-over-year change of -18.5%. Revenues are expected to be $1.48 billion, up 2.6% 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 Simon Property, the consensus estimate for FFO per share for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in FFO estimate revision usually translates into price appreciation. So, make sure to keep an eye on SPG 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 >>>>

Simon Property is a member of the Zacks REIT and Equity Trust - Retail industry. One other stock in the same industry, Essential Properties (EPRT - Free Report) , finished the last trading session 7.7% higher at $30.64. EPRT has returned -8.6% over the past month.

For Essential Properties, the consensus estimate for FFO per share for the upcoming report has changed -0.6% over the past month to $0.46. This represents a change of +9.5% from what the company reported a year ago. Essential Properties currently has a Zacks Rank of #4 (Sell).


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