Altisource Portfolio (ASPS) Surges 15.3%: Is This an Indication of Further Gains?

Altisource Portfolio Solutions (ASPS) shares ended the last trading session 15.3% higher at $6.11. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.3% loss over the past four weeks.

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

This real estate services firm is expected to post quarterly FFO of $0.18 per share in its upcoming report, which represents a year-over-year change of +80%. Revenues are expected to be $48.1 million, up 21.3% 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 Altisource Portfolio, the consensus FFO per share estimate 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 FFO estimate revisions. So, make sure to keep an eye on ASPS 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 >>>>

Altisource Portfolio is part of the Zacks REIT and Equity Trust industry. Ready Capital (RC), another stock in the same industry, closed the last trading session 4.6% lower at $1.24. RC has returned -26.6% in the past month.

Ready Capital's consensus FFO per share estimate for the upcoming report has remained unchanged over the past month at -$0.24. Compared to the company's year-ago FFO per share, this represents a change of +74.5%. Ready Capital 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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