ACRES Commercial Realty (ACR) Surges 9.7%: Is This an Indication of Further Gains?

ACRES Commercial (ACR) shares rallied 9.7% in the last trading session to close at $13.36. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 18.9% gain over the past four weeks.

The Federal Reserve held interest rates steady yesterday but still expects three interest rate cuts this year. In its meeting, the central bank also showed confidence in the commercial real estate (“CRE”) space, saying that the CRE stress is manageable. Given ACR’s $1.9-billion CRE portfolio, the confidence shown by the central bank has resulted in investors’ bullish stance on the company.

This commercial real estate investment trust is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of -11.5%. Revenues are expected to be $13 million, down 6.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For ACRES Commercial Realty, the consensus EPS 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 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 Realty is part of the Zacks REIT and Equity Trust industry. Ladder Capital (LADR), another stock in the same industry, closed the last trading session 2.2% higher at $11.17. LADR has returned 3.8% in the past month.

For Ladder Capital Corp, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.31. This represents a change of -18.4% from what the company reported a year ago. Ladder Capital Corp currently has a Zacks Rank of #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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