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Howard Hughes Holdings (HHH - Free Report) , a Zacks Rank #5 (Strong Sell), operates as a real estate development company in the United States. The company’s operating base consists of developed and/or acquired retail, office, and multi-family properties along with other retail investments.
The diversified real estate firm develops, sells, and leases residential and commercial land designated for long-term community develop projects. Howard Hughes Holdings is also involved in landlord operations, managed businesses, and events and sponsorship services of its retail and entertainment properties.
Founded in 2010, Woodlands-based Howard Hughes Holdings operates in Texas, Nevada, Arizona, Maryland, Hawaii, and New York. As we’ll see, future earnings estimates have been plunging lately, providing a grim backdrop for this real estate company.
The Zacks Rundown
Howard Hughes Holdings has been severely underperforming the market over the past year. The downtrend has continued in 2024 as HHH stock hits a series of 52-week lows. The company represents a compelling short opportunity as general market volatility begins to rise.
HHH is part of the Zacks Real Estate – Development industry group, which currently ranks in the bottom 14% out of approximately 250 industries. Because this industry is ranked in the bottom half of all Zacks Ranked Industries, we expect it to underperform the market over the next 3 to 6 months. This industry has widely underperformed the market so far in 2024.
Candidates in the bottom half of industry groups can often represent potential short candidates. While individual stocks have the ability to outperform even when included in weak industries, their industry association serves as a headwind for any potential rallies. Howard Hughes Holdings continues to fight an uphill battle and the stock is confirming this notion, lagging the general market by a wide margin.
Recent Earnings and Deteriorating Forecasts
The real estate developer missed the earnings mark in three of the past four quarters. The company has delivered a trailing four-quarter average earnings miss of -194.19%. Consistently falling short of earnings estimates is a recipe for underperformance.
Analysts covering HHH decreased their earnings estimates recently. Looking at the latest quarter, Q1 estimates have been slashed by 115.84% in the past 60 days. The Zacks Consensus Estimate sits at -$0.7/share, reflecting a 52.2% drop from the year-ago period. Howard Hughes is set to report the quarterly results on May 8th.
Image Source: Zacks Investment Research
Technical Outlook
Howard Hughes has been steadily falling since late last year and has now established a well-defined downtrend. Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping down. Shares have declined nearly 25% this year alone.
Image Source: StockCharts
HHH stock has also experienced the dreaded death cross, whereby its 50-day moving average crosses below its 200-day moving average. Howard Hughes Holdings would have to make a serious move to the upside and show increasing earnings estimate revisions to warrant taking any long positions in the stock. Shares remain in negative territory this year while the general market has eclipsed its former highs.
Despite the conspicuous signs of underperformance, HHH shares remain relatively overvalued, irrespective of the metric used:
Image Source: Zacks Investment Research
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock is not set to develop new highs anytime soon. The fact that HHH is included in one of the worst-performing industry groups provides yet another headwind to a long list of concerns.
A history of earnings misses and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock’s downtrend. Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of an overvalued HHH until the situation shows major signs of improvement.
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Bear of the Day: Howard Hughes Holdings (HHH)
Howard Hughes Holdings (HHH - Free Report) , a Zacks Rank #5 (Strong Sell), operates as a real estate development company in the United States. The company’s operating base consists of developed and/or acquired retail, office, and multi-family properties along with other retail investments.
The diversified real estate firm develops, sells, and leases residential and commercial land designated for long-term community develop projects. Howard Hughes Holdings is also involved in landlord operations, managed businesses, and events and sponsorship services of its retail and entertainment properties.
Founded in 2010, Woodlands-based Howard Hughes Holdings operates in Texas, Nevada, Arizona, Maryland, Hawaii, and New York. As we’ll see, future earnings estimates have been plunging lately, providing a grim backdrop for this real estate company.
The Zacks Rundown
Howard Hughes Holdings has been severely underperforming the market over the past year. The downtrend has continued in 2024 as HHH stock hits a series of 52-week lows. The company represents a compelling short opportunity as general market volatility begins to rise.
HHH is part of the Zacks Real Estate – Development industry group, which currently ranks in the bottom 14% out of approximately 250 industries. Because this industry is ranked in the bottom half of all Zacks Ranked Industries, we expect it to underperform the market over the next 3 to 6 months. This industry has widely underperformed the market so far in 2024.
Candidates in the bottom half of industry groups can often represent potential short candidates. While individual stocks have the ability to outperform even when included in weak industries, their industry association serves as a headwind for any potential rallies. Howard Hughes Holdings continues to fight an uphill battle and the stock is confirming this notion, lagging the general market by a wide margin.
Recent Earnings and Deteriorating Forecasts
The real estate developer missed the earnings mark in three of the past four quarters. The company has delivered a trailing four-quarter average earnings miss of -194.19%. Consistently falling short of earnings estimates is a recipe for underperformance.
Analysts covering HHH decreased their earnings estimates recently. Looking at the latest quarter, Q1 estimates have been slashed by 115.84% in the past 60 days. The Zacks Consensus Estimate sits at -$0.7/share, reflecting a 52.2% drop from the year-ago period. Howard Hughes is set to report the quarterly results on May 8th.
Image Source: Zacks Investment Research
Technical Outlook
Howard Hughes has been steadily falling since late last year and has now established a well-defined downtrend. Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping down. Shares have declined nearly 25% this year alone.
Image Source: StockCharts
HHH stock has also experienced the dreaded death cross, whereby its 50-day moving average crosses below its 200-day moving average. Howard Hughes Holdings would have to make a serious move to the upside and show increasing earnings estimate revisions to warrant taking any long positions in the stock. Shares remain in negative territory this year while the general market has eclipsed its former highs.
Despite the conspicuous signs of underperformance, HHH shares remain relatively overvalued, irrespective of the metric used:
Image Source: Zacks Investment Research
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock is not set to develop new highs anytime soon. The fact that HHH is included in one of the worst-performing industry groups provides yet another headwind to a long list of concerns.
A history of earnings misses and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock’s downtrend. Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of an overvalued HHH until the situation shows major signs of improvement.