Tricon Residential Inc. (TCN) Soars 28.3%: Is Further Upside Left in the Stock?
Tricon Residential Inc. (TCN) shares ended the last trading session 28.3% higher at $11.07. 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 4.3% loss over the past four weeks.
The increased optimism in the stock stems from the recent announcement of its acquisition by Blackstone Real Estate at $11.25 per common share in cash. The transaction price indicates a premium of 30% to TCN’s closing share price on the NYSE on Jan 18, 2024. The closing of the $3.5 billion deal, subject to a number of closing conditions, is expected in the second quarter of 2024.
This company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +27.3%. Revenues are expected to be $130.17 million, up 6.2% 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 Tricon Residential Inc., the consensus EPS estimate for the quarter has been revised 6.7% 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 TCN 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 >>>>
Tricon Residential Inc. is part of the Zacks Real Estate - Operations industry. Anywhere Real Estate (HOUS), another stock in the same industry, closed the last trading session 2.5% higher at $6.52. HOUS has returned -18.3% in the past month.
For Anywhere Real Estate , the consensus EPS estimate for the upcoming report has changed +6.4% over the past month to -$0.39. This represents a change of +54.1% from what the company reported a year ago. Anywhere Real Estate currently has a Zacks Rank of #2 (Buy).
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