Tanger (SKT) Surges 6.6%: Is This an Indication of Further Gains?

Tanger (SKT) shares soared 6.6% in the last trading session to close at $39.47. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.9% gain over the past four weeks.

The increased investor optimism in the stock can be attributed to the favorable operating environment.

This factory outlet mall operator is expected to post quarterly funds from operation (FFO) of 62 cents per share in its upcoming report, which represents a year-over-year change of +6.9%. Revenues are expected to be $142.26 million, up 6.6% 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 Tanger, the consensus estimate for FFO per share for the quarter has been revised 0.5% 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 SKT 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 >>>>

Tanger is part of the Zacks REIT and Equity Trust - Retail industry. Kimco Realty KIM, another stock in the same industry, closed the last trading session 3.9% higher at $25.19. KIM has returned 3.3% in the past month.

Kimco Realty's consensus estimate for FFO per share for the upcoming report has changed +0.1% over the past month to $0.45. Compared to the company's year-ago FFO per share, this represents a change of +2.3%. Kimco Realty currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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