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Strength Seen in Hudson Pacific (HPP): Can Its 14.1% Jump Turn into More Strength?

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Hudson Pacific Properties (HPP - Free Report) shares rallied 14.1% in the last trading session to close at $5.02. 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 16% loss over the past four weeks.

The increased optimism in the stock can be attributed to the recovering fundamentals of the U.S. office real estate market.

This real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.24 per share in its upcoming report, which represents a year-over-year change of -52.9%. Revenues are expected to be $237.63 million, down 5.5% from the year-ago quarter.

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

For Hudson Pacific, the consensus FFO per share estimate for the quarter has been revised 1.9% 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 HPP 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 >>>>

Hudson Pacific belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Healthpeak , closed the last trading session 0.8% lower at $20.55. Over the past month, PEAK has returned -1%.

Healthpeak's consensus FFO per share estimate for the upcoming report has changed +0.2% over the past month to $0.44. Compared to the company's year-ago FFO per share, this represents no change. Healthpeak currently boasts a Zacks Rank of #3 (Hold).


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