Alexandria Real Estate Equities (ARE) Stock Jumps 7.1%: Will It Continue to Soar?

Alexandria Real Estate Equities (ARE) shares ended the last trading session 7.1% higher at $134.45. 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 18.8% gain over the past four weeks.

After 11 interest rate hikes, the Fed's decision to pause rate hikes for the third month drove bullish sentiments across markets amid the optimism of easing inflation pressures. With this, the interest rates remain at a 22-year high of 5.25-5.5%. Further, the central bank indicated three interest rate cuts by 2024-end. These developments turned investor sentiment bullish on REIT stocks, as low rates are likely to make REITs funding cost more affordable. Hence, the ARE stock gained.

This life science real estate company is expected to post quarterly earnings of $2.29 per share in its upcoming report, which represents a year-over-year change of +7%. Revenues are expected to be $738.89 million, up 10.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Alexandria Real Estate Equities, 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 ARE 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 >>>>

Alexandria Real Estate Equities is part of the Zacks REIT and Equity Trust - Other industry. Highwoods Properties (HIW), another stock in the same industry, closed the last trading session 8.5% higher at $24.20. HIW has returned 13.3% in the past month.

Highwoods Properties' consensus EPS estimate for the upcoming report has changed -1.1% over the past month to $0.91. Compared to the company's year-ago EPS, this represents a change of -5.2%. Highwoods Properties currently boasts a Zacks Rank of #3 (Hold).

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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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