Strength Seen in DigitalBridge (DBRG): Can Its 5.3% Jump Turn into More Strength?

DigitalBridge (DBRG) shares ended the last trading session 5.3% higher at $12.81. 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 9.8% gain over the past four weeks.

The increased optimism in the stock stems from the rise in investments in data centers, cell towers, fiber networks, small cells and edge infrastructure amid the growing reliance on technology, acceleration in digital transformation strategies by enterprises and 5G network deployment by wireless carriers.

This provider of asset management services to NorthStar Realty Finance Corp. is expected to post quarterly funds from operations (FFO) of $0.13 per share in its upcoming report, which represents a year-over-year change of +425%. Revenues are expected to be $289.93 million, up 13.3% 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 DigitalBridge, 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 DBRG 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 >>>>

DigitalBridge is a member of the Zacks REIT and Equity Trust industry. One other stock in the same industry, Apollo Commerical Finance (ARI), finished the last trading session 0.7% lower at $11.80. ARI has returned 5.1% over the past month.

For Apollo Commerical Finance, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.36. This represents a change of +12.5% from what the company reported a year ago. Apollo Commerical Finance currently has a Zacks Rank of #3 (Hold).

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

DigitalBridge Group, Inc. (DBRG) : Free Stock Analysis Report

Apollo Commercial Real Estate Finance (ARI) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

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

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.