NexPoint Residential Trust Inc. (NXRT) shares soared 7.6% in the last trading session to close at $34.90. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18.7% 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 investment trust is expected to post quarterly funds from operations (FFO) of $0.77 per share in its upcoming report, which represents a year-over-year change of -10.5%. Revenues are expected to be $63.71 million, down 5.7% from the year-ago quarter.
FFO and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in FFO per share estimate revisions are strongly correlated with near-term stock price movements.
For NexPoint Residential Trust Inc., the consensus FFO per share estimate for the quarter has been revised 2.9% lower over the last 30 days to the current level. And a negative trend in FFO per share estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on NXRT 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 >>>>
NexPoint Residential Trust Inc. is a member of the Zacks REIT and Equity Trust - Residential industry. One other stock in the same industry, AvalonBay Communities (AVB), finished the last trading session 7% higher at $200.39. AVB has returned -12.1% over the past month.
AvalonBay's consensus FFO per share estimate for the upcoming report has changed -0.3% over the past month to $2.80. Compared to the company's year-ago FFO per share, this represents a change of +3.7%. AvalonBay currently boasts a Zacks Rank of #4 (Sell).
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NexPoint Residential Trust, Inc. (NXRT): Free Stock Analysis Report AvalonBay Communities, Inc. (AVB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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