Brandywine Realty Trust (BDN) Moves 6.4% Higher: Will This Strength Last?
Brandywine Realty Trust (BDN) shares rallied 6.4% in the last trading session to close at $5.53. 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 20.4% gain over the past four weeks.
After 11 interest rate hikes, the Fed's decision to pause rate hikes for the third month drove bullish sentiments across markets amid the optimism of easing inflation pressures. With this, the interest rates remain at a 22-year high of 5.25-5.5%. Further, the central bank indicated three interest rate cuts by 2024-end. These developments turned investor sentiment bullish on REIT stocks, as low rates are likely to make REITs funding cost more affordable. Hence, the BDN stock gained.
This real estate investment trust is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -9.4%. Revenues are expected to be $134.08 million, up 4% 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 Brandywine Realty Trust, the consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on BDN 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 >>>>
Brandywine Realty Trust is part of the Zacks REIT and Equity Trust - Other industry. Crown Castle (CCI), another stock in the same industry, closed the last trading session 1.9% lower at $114.55. CCI has returned 13.1% in the past month.
Crown Castle's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.78. Compared to the company's year-ago EPS, this represents a change of -3.8%. Crown Castle currently boasts a Zacks Rank of #3 (Hold).
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