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DiamondRock Hospitality (DRH) Moves 13.8% Higher: Will This Strength Last?

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DiamondRock Hospitality (DRH - Free Report) shares soared 13.8% in the last trading session to close at $7.28. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 19.1% 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 hotel and resort real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.17 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $259.27 million, up 1.1% 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 DiamondRock Hospitality, the consensus estimate for FFO per share for the quarter has been revised 4.2% lower over the last 30 days to the current level. And a negative trend in FFO estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DRH 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 >>>>

DiamondRock Hospitality is a member of the Zacks REIT and Equity Trust - Other industry. One other stock in the same industry, Hudson Pacific Properties (HPP - Free Report) , finished the last trading session 8.7% higher at $2.37. HPP has returned -19.6% over the past month.

For Hudson Pacific, the consensus estimate for FFO per share for the upcoming report has changed +8.3% over the past month to $0.09. This represents a change of -47.1% from what the company reported a year ago. Hudson Pacific currently has a Zacks Rank of #3 (Hold).


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