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Strength Seen in Century Communities (CCS): Can Its 8.6% Jump Turn into More Strength?

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Century Communities (CCS - Free Report) shares ended the last trading session 8.6% higher at $88.26. 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 1.8% loss over the past four weeks.

Shares of CCS are expected to have gained on the easing inflation scenario as of June 2024, as released by the U.S. Bureau of Labor Statistics. The investors’ sentiments are boosted on the back of a 0.1% decline in inflation in June compared with the prior month, thus opening the window for the Fed to start lowering interest rates in the later part of 2024.

This single-family homebuilder is expected to post quarterly earnings of $2.46 per share in its upcoming report, which represents a year-over-year change of +53.8%. Revenues are expected to be $1.04 billion, up 22.6% 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 Century Communities, 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 CCS 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 >>>>

Century Communities is a member of the Zacks Building Products - Home Builders industry. One other stock in the same industry, NVR (NVR - Free Report) , finished the last trading session 5.9% higher at $8,069.89. NVR has returned -0.4% over the past month.

NVR's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $121.65. Compared to the company's year-ago EPS, this represents a change of +4.4%. NVR currently boasts a Zacks Rank of #2 (Buy).


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