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Service Properties (SVC) Gains But Lags Market: What You Should Know

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In the latest trading session, Service Properties (SVC - Free Report) closed at $8.61, marking a +0.94% move from the previous day. This change lagged the S&P 500's 1.15% gain on the day. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 7.23%.

Heading into today, shares of the real estate investment trust had gained 3.52% over the past month, outpacing the Finance sector's gain of 2.77% and the S&P 500's gain of 3.08% in that time.

Service Properties will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.58, up 7.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $505.35 million, down 2.02% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.84 per share and revenue of $1.88 billion, which would represent changes of +22.67% and +0.79%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Service Properties. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Service Properties is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Service Properties is currently trading at a Forward P/E ratio of 4.64. This represents a discount compared to its industry's average Forward P/E of 11.47.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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