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ACRES Commercial (ACR) Moves 9.5% Higher: Will This Strength Last?

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ACRES Commercial (ACR - Free Report) shares soared 9.5% in the last trading session to close at $11.06. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 27.5% loss over the past four weeks.

The increased investor optimism toward the stock can be attributed to ACRES Commercial’s announcement of an additional $5 million authorization under its existing share-repurchase program. The move likely boosted confidence by signaling management’s willingness to return capital to shareholders and support shareholder value.

This commercial real estate investment trust is expected to post quarterly earnings of 15 cents per share in its upcoming report, which represents a year-over-year change of -85.2%. Revenues are expected to be $12.6 million, up 50.5% 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 ACRES Commercial, the consensus estimate for EPS 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 ACR 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 >>>>

ACRES Commercial belongs to the Zacks REIT and Equity Trust industry. Another stock from the same industry, Adamas Trust (ADAM - Free Report) , closed the last trading session 1.9% lower at $7.78. Over the past month, ADAM has returned -17.5%.

For Adamas Trust, the consensus estimate for EPS for the upcoming report has remained unchanged over the past month at $0.3. This represents a change of +25% from what the company reported a year ago. Adamas Trust currently has a Zacks Rank of #3 (Hold).

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