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Redfin (RDFN) Soars 7.7%: Is Further Upside Left in the Stock?
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Redfin (RDFN - Free Report) shares soared 7.7% in the last trading session to close at $7.57. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9% gain over the past four weeks.
The increased investor optimism in the stock can be attributed to the recent decline in mortgage rates, which is likely to provide an impetus to the United States housing demand.
This real estate broker is expected to post quarterly loss of $0.25 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $291.59 million, up 5.8% 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 Redfin, 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 RDFN going forward to see if this recent jump can turn into more strength down the road.
Redfin is a member of the Zacks Real Estate - Operations industry. One other stock in the same industry, CBRE Group (CBRE - Free Report) , finished the last trading session 1.6% higher at $94.65. CBRE has returned 4.6% over the past month.
CBRE's consensus EPS estimate for the upcoming report has changed +3.3% over the past month to $0.72. Compared to the company's year-ago EPS, this represents a change of -12.2%. CBRE currently boasts a Zacks Rank of #3 (Hold).
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Redfin (RDFN) Soars 7.7%: Is Further Upside Left in the Stock?
Redfin (RDFN - Free Report) shares soared 7.7% in the last trading session to close at $7.57. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9% gain over the past four weeks.
The increased investor optimism in the stock can be attributed to the recent decline in mortgage rates, which is likely to provide an impetus to the United States housing demand.
This real estate broker is expected to post quarterly loss of $0.25 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $291.59 million, up 5.8% 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 Redfin, 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 RDFN 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 >>>>
Redfin is a member of the Zacks Real Estate - Operations industry. One other stock in the same industry, CBRE Group (CBRE - Free Report) , finished the last trading session 1.6% higher at $94.65. CBRE has returned 4.6% over the past month.
CBRE's consensus EPS estimate for the upcoming report has changed +3.3% over the past month to $0.72. Compared to the company's year-ago EPS, this represents a change of -12.2%. CBRE currently boasts a Zacks Rank of #3 (Hold).