Rexford Industrial (REXR) shares soared 7.1% in the last trading session to close at $37.58. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.1% gain over the past four weeks.
The increased investor optimism in the stock can be attributed to the favorable operating environment.
This industrial real estate investment trust is expected to post quarterly FFO of $0.60 per share in its upcoming report, which represents a year-over-year change of +1.7%. Revenues are expected to be $246.07 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 Rexford Industrial, the consensus FFO per share estimate for the quarter has been revised marginally 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 REXR 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 >>>>
Rexford Industrial is a member of the Zacks REIT and Equity Trust - Other industry. One other stock in the same industry, National Health Investors (NHI), finished the last trading session 4.4% higher at $79.14. NHI has returned 7.5% over the past month.
National Health Investors' consensus FFO per share estimate for the upcoming report has changed -8.4% over the past month to $1.26. Compared to the company's year-ago FFO per share, this represents a change of +3.3%. National Health Investors currently boasts a Zacks Rank of #5 (Strong Sell).
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Rexford Industrial Realty, Inc. (REXR): Free Stock Analysis Report
National Health Investors, Inc. (NHI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).