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TPG RE Finance Trust (TRTX) Moves 5.2% Higher: Will This Strength Last?

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TPG RE Finance Trust (TRTX - Free Report) shares ended the last trading session 5.2% higher at $9.50. 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 9.7% loss over the past four weeks.

TPG Real Estate Finance witnessed a rise in share price in last day’s trading session. The performance of the company is expected to improve in the quarters ahead on the back of rising interest rates. In its most aggressive hike since 1994, the Federal Reserve, at the end of the two-day policy meeting on Jun 15, increased the interest rates by 75 basis points (bps). Given the rate increase in the past months, we believe that higher rates are tailwinds for TPG Real Estate Finance. Moreover, efforts to refinance higher-cost capital and gains on the sale of assets have likely led to investors’ optimistic stance.

This commercial real estate finance company is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of -3.7%. Revenues are expected to be $33.86 million, down 15.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For TPG RE Finance Trust, the consensus EPS 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 earnings estimate revisions. So, make sure to keep an eye on TRTX 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 >>>>

TPG RE Finance Trust is a member of the Zacks Real Estate - Operations industry. One other stock in the same industry, KE Holdings Inc. Sponsored ADR (BEKE - Free Report) , finished the last trading session 6.7% higher at $15.88. BEKE has returned 20.7% over the past month.

For KE Holdings Inc. Sponsored ADR, the consensus EPS estimate for the upcoming report has changed -833.3% over the past month to -$0.21. This represents a change of -200% from what the company reported a year ago. KE Holdings Inc. Sponsored ADR currently has a Zacks Rank of #4 (Sell).


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