Back to top

Image: Bigstock

Medical Properties (MPW) Surges 8.9%: Is This an Indication of Further Gains?

Read MoreHide Full Article

Medical Properties (MPW - Free Report) shares soared 8.9% in the last trading session to close at $11.71. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.8% loss over the past four weeks.

Medical Properties’ largest hospital tenant, Steward Health Care, announced the extension of its ABL agreement with the lenders through December 2023. This led to increased investor optimism, driving the MPW stock.

This health care real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.43 per share in its upcoming report, which represents a year-over-year change of -8.5%. Revenues are expected to be $383.28 million, down 6.4% 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 estimate revisions and near-term stock price movements.

For Medical Properties, the consensus estimate for FFO per share for the quarter has been revised 1.3% 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 MPW 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 >>>>

Medical Properties is a member of the Zacks REIT and Equity Trust - Other industry. One other stock in the same industry, Vornado (VNO - Free Report) , finished the last trading session 1.8% higher at $21.45. VNO has returned -14.5% over the past month.

Vornado's FFO per share estimates for the upcoming report have changed -0.7% over the past month to $0.68. Compared to the company's year-ago reported FFO per share, this represents a change of -16.1%. Vornado currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Vornado Realty Trust (VNO) - free report >>

Medical Properties Trust, Inc. (MPW) - free report >>

Published in