Plum Creek Timber Company Inc.
) reached a new 52-week high touching $50.55 in the mid trading
session on Thursday, Mar 21, 2013, as it gained momentum
following decent fourth-quarter 2012 results. The closing price
of this real estate investment trust (REIT) on Mar 21, 2013, was
$50.19, representing a solid year-to-date return of 11.5%. The
average trading volume over the last 3 months was 0.9 million
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Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock
has plenty of upside left given its strong estimate revisions
following the earnings release.
We believe that Plum Creek's diversified timber and land base
enables it to benefit from large economies of scale. Its deal
with Drax and Vulcan Materials will auger well for its top line.
In addition, the upsurge in demographic trends driving housing
markets and demand for real estate properties across the country
provides a strong backdrop for the company to demonstrate its
solid financial performance in the future.
On Jan 28, Plum Creek reported impressive fourth quarter 2012
results. The company's earnings per share reached $0.49,
significantly surpassing the Zacks Consensus Estimate of $0.29
and the year-ago quarter earnings of $0.38. For full-year 2012,
Plum Creek reported earnings of $1.25 per share, up from $1.19
per share earned a year ago. Results also exceeded the Zacks
Consensus Estimate of $1.05 per share. The better-than expected
results were driven by increasing demand for wood products
stemming from a recovery in the residential construction market,
leading to improved performance by the timber, real estate and
Notably, Plum Creek has now delivered positive earnings surprises
in 3 straight quarters with an average beat of 23.2%.
Estimate Revisions Show Potency
Over the last 60 days, 5 estimates for 2013 have been revised
upward, lifting the Zacks Consensus Estimate by 2.2% to $1.40 per
share. Furthermore, 2 estimates for 2014 have moved higher,
raising the Zacks Consensus Estimate by 2.5% to $1.67 per share.
In addition to Plum Creek, a number of REITs touched a 52-week
high yesterday. This includes
BioMed Realty Trust Inc.
Health Care REIT Inc.
The Macerich Company