Strength Seen in Armada Hoffler Properties (AHH): Can Its 6.1% Jump Turn into More Strength?

Armada Hoffler Properties (AHH) shares ended the last trading session 6.1% higher at $6.76. 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 27% loss over the past four weeks.

The increased investor optimism in the stock can be attributed to President Donald Trump’s recent announcement to put a 90-day pause on the reciprocal tariff for most countries.

This real estate company is expected to post quarterly funds from operations (FFO) of $0.26 per share in its upcoming report, which represents a year-over-year change of -21.2%. Revenues are expected to be $63.33 million, up 2.3% 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 per share estimate revisions and near-term stock price movements.

For Armada Hoffler Properties, 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 per share estimate revisions. So, make sure to keep an eye on AHH 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 >>>>

Armada Hoffler Properties is part of the Zacks REIT and Equity Trust - Residential industry. Equity Lifestyle Properties (ELS), another stock in the same industry, closed the last trading session 3.7% higher at $64.05. ELS has returned -8.9% in the past month.

Equity Lifestyle Properties' consensus FFO per share estimate for the upcoming report has remained unchanged over the past month at $0.83. Compared to the company's year-ago FFO per share, this represents a change of +6.4%. Equity Lifestyle Properties currently boasts a Zacks Rank of #4 (Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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