Back to top

Image: Bigstock

The Real Brokerage (REAX) Surges 5.9%: Is This an Indication of Further Gains?

Read MoreHide Full Article

The Real Brokerage Inc. (REAX - Free Report) shares soared 5.9% in the last trading session to close at $5.22. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.9% gain over the past four weeks.

The stock is gaining from the company’s steady increase in agent numbers. The company is capitalizing on the ongoing trend of agents moving from traditional, high-cost brokerages to more efficient, high-value models such as REAX.

This company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $264.06 million, up 42.5% 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 The Real Brokerage, 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 REAX 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 >>>>

The Real Brokerage is part of the Zacks Technology Services industry. GDS Holdings (GDS - Free Report) , another stock in the same industry, closed the last trading session 0.7% lower at $12.18. GDS has returned 35.8% in the past month.

GDS Holdings' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.26. Compared to the company's year-ago EPS, this represents a change of -44.4%. GDS Holdings currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


GDS Holdings (GDS) - free report >>

The Real Brokerage Inc. (REAX) - free report >>

Published in