In the latest trading session, Sotherly Hotels (SOHO) closed at $6.80, marking a +1.19% move from the previous day. This move outpaced the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.36%.
Prior to today's trading, shares of the real estate investment trust had gained 5.5% over the past month. This has lagged the Finance sector's gain of 7.96% and the S&P 500's gain of 8.17% in that time.
Wall Street will be looking for positivity from SOHO as it approaches its next earnings report date. This is expected to be February 26, 2019.
It is also important to note the recent changes to analyst estimates for SOHO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SOHO is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, SOHO is holding a Forward P/E ratio of 5.95. This represents a discount compared to its industry's average Forward P/E of 14.88.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SOHO in the coming trading sessions, be sure to utilize Zacks.com.
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