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Macerich (MAC) Stock Jumps 8.7%: Will It Continue to Soar?

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Macerich (MAC - Free Report) shares rallied 8.7% in the last trading session to close at $14.01. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 13.4% loss over the past four weeks.

This increased optimism stems from the rebounding fundamentals of the retail real estate market and its capacity to leverage growth potential.

This shopping center real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.46 per share in its upcoming report, which represents a year-over-year change of +2.2%. Revenues are expected to be $222.2 million, up 16.7% 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 estimate revisions are strongly correlated with near-term stock price movements.

For Macerich, the consensus FFO per share estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. And a negative trend in FFO estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MAC 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 >>>>

Macerich belongs to the Zacks REIT and Equity Trust - Retail industry. Another stock from the same industry, Urstadt Biddle Properties , closed the last trading session 1.9% higher at $17.86. Over the past month, UBA has returned -4.9%.

For Urstadt Biddle, the consensus FFO per share estimate for the upcoming report has remained unchanged over the past month at $0.37. This represents a change of +19.4% from what the company reported a year ago. Urstadt Biddle currently has a Zacks Rank of #4 (Sell).


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