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Service Properties (SVC) Outpaces Stock Market Gains: What You Should Know

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Service Properties (SVC - Free Report) closed at $9.19 in the latest trading session, marking a +0.22% move from the prior day. This move outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 4.87%.

Prior to today's trading, shares of the real estate investment trust had gained 0.33% over the past month. This has lagged the Finance sector's gain of 3.03% and the S&P 500's gain of 3.31% in that time.

Service Properties will be looking to display strength as it nears its next earnings release, which is expected to be May 9, 2023. In that report, analysts expect Service Properties to post earnings of $0.29 per share. This would mark year-over-year growth of 1550%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $403.7 million, up 2.52% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.89 per share and revenue of $1.89 billion. These totals would mark changes of +26% and +1.36%, respectively, from last year.

Any recent changes to analyst estimates for Service Properties should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Service Properties is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, Service Properties is holding a Forward P/E ratio of 4.86. Its industry sports an average Forward P/E of 10.93, so we one might conclude that Service Properties is trading at a discount comparatively.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 111, putting it in the top 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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