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Strength Seen in Beazer (BZH): Can Its 10.8% Jump Turn into More Strength?
Beazer Homes (BZH - Free Report) shares rallied 10.8% in the last trading session to close at $27.30. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 19.4% gain over the past four weeks.
Beazer Homes' rally is buoyed by a surge in new U.S. single-family home sales, reaching the highest level in more than a year in May. The housing market's momentum is driven by the scarcity of available previously-owned homes, compelling buyers to turn to new construction options. This positive trend is supported by increased buyer confidence and a revival in the housing market.
This homebuilder is expected to post quarterly earnings of $0.88 per share in its upcoming report, which represents a year-over-year change of -50%. Revenues are expected to be $513.3 million, down 2.5% 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 Beazer, 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 BZH 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 >>>>
Beazer is a member of the Zacks Building Products - Home Builders industry. One other stock in the same industry, Dream Finders Homes Inc. (DFH - Free Report) , finished the last trading session 1.2% higher at $23.90. DFH has returned 31.6% over the past month.
Dream Finders Homes' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.16. Compared to the company's year-ago EPS, this represents a change of -73.3%. Dream Finders Homes currently boasts a Zacks Rank of #4 (Sell).