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Hannon Armstrong (HASI) Surges 10.5%: Is This an Indication of Further Gains?

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Hannon Armstrong (HASI - Free Report) shares ended the last trading session 10.5% higher at $32.20. 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 8.8% loss over the past four weeks.

HASI retained its rally for the third straight day, driven by strengths in its robust and diverse investment portfolio, specialized climate finance expertise and extensive industry relationships. The firm's focus on climate-positive investments and use of proven commercial technologies ensure high-quality, low-risk assets with contracted cash flows. HASI's innovative CarbonCount metric quantifies the environmental impact of investments, thus enhancing its appeal to sustainability-focused investors. 

Additionally, its flexible financing strategies, including off-balance sheet securitizations and green bond issuances, enable efficient capital utilization and attractive risk-adjusted returns.

This provider of financing for sustainable infrastructure projects is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of +3.8%. Revenues are expected to be $29.9 million, down 11.1% 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 Hannon Armstrong, 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 HASI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Hannon Armstrong is part of the Zacks Financial - Miscellaneous Services industry. Virtu Financial (VIRT - Free Report) , another stock in the same industry, closed the last trading session 0.4% lower at $22.41. VIRT has returned -6.7% in the past month.

For Virtu Financial, the consensus EPS estimate for the upcoming report has changed +0.5% over the past month to $0.61. This represents a change of +64.9% from what the company reported a year ago. Virtu Financial currently has a Zacks Rank of #2 (Buy).


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