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Arbor Realty Trust (ABR) Soars 7.4%: Is Further Upside Left in the Stock?

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Arbor Realty Trust (ABR - Free Report) shares ended the last trading session 7.4% higher at $14.43. 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 7.1% gain over the past four weeks.

Shares of Arbor Realty rallied on the news of the company joining the S&P SmallCap 600, effective Jun 23 before market open. The addition of stocks in indices usually drives their trading volumes and prices. This, thus, led to bullish investor sentiments, which drove the ABR stock.

This real estate investment trust is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of -9.6%. Revenues are expected to be $315.34 million, up 56.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Arbor Realty Trust, the consensus EPS estimate for the quarter has been revised 0.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ABR 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 >>>>

Arbor Realty Trust belongs to the Zacks REIT and Equity Trust industry. Another stock from the same industry, Chimera Investment (CIM - Free Report) , closed the last trading session 2.4% higher at $5.66. Over the past month, CIM has returned 12.4%.

For Chimera, the consensus EPS estimate for the upcoming report has changed -21.1% over the past month to $0.15. This represents a change of -51.6% from what the company reported a year ago. Chimera currently has a Zacks Rank of #4 (Sell).


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