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Alexandria Real Estate Equities (ARE) Surges 5.0%: Is This an Indication of Further Gains?

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Alexandria Real Estate Equities (ARE - Free Report) shares soared 5% in the last trading session to close at $80.82. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22.5% 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 life science real estate company is expected to post quarterly funds from operations (FFO) of $2.28 per share in its upcoming report, which represents a year-over-year change of -3%. Revenues are expected to be $758.46 million, down 1.4% from the year-ago quarter.

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

For Alexandria Real Estate Equities, the consensus estimate for FFO per share for the quarter has been revised 0.5% 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 ARE 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 >>>>

Alexandria Real Estate Equities is a member of the Zacks REIT and Equity Trust - Other industry. One other stock in the same industry, Gladstone Commercial (GOOD - Free Report) , finished the last trading session 4.1% higher at $13.70. GOOD has returned -12.4% over the past month.

For Gladstone Commercial, the consensus estimate for FFO per share for the upcoming report has changed -1.8% over the past month to $0.34. This represents no change from what the company reported a year ago. Gladstone Commercial currently has a Zacks Rank of #3 (Hold).


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