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Cedar (CDR) Surges 7.5%: Is This an Indication of Further Gains?

Zacks Equity Research
·2 min read

Cedar Realty Trust (CDR) shares ended the last trading session 7.5% higher at $28.45. 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 0.7% loss over the past four weeks.

This increased optimism stems from Jun 23 court call wherein a judge denied the motion to temporarily block Cedar Realty Trust’s $29 per share sale to Wheeler Real Estate Investment Trust.

This real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.65 per share in its upcoming report, which represents a year-over-year change of +6.6%. Revenues are expected to be $30.9 million, down 4.1% from the year-ago quarter.

While FFO and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in FFO estimate revisions and near-term stock price movements.

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For Cedar, the consensus FFO per share estimate for the quarter has been revised 2.4% higher over the last 30 days to the current level. And a positive trend in FFO estimate revision usually translates into price appreciation. So, make sure to keep an eye on CDR 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 >>>>

Cedar is a member of the Zacks REIT and Equity Trust - Other industry. One other stock in the same industry, Medical Properties (MPW), finished the last trading session 2.7% higher at $15.05. MPW has returned -21.9% over the past month.

For Medical Properties , the consensus FFO per share estimate for the upcoming report has remained unchanged over the past month at $0.45. This represents a change of +4.7% from what the company reported a year ago. Medical Properties currently has a Zacks Rank of #3 (Hold).


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