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Xenia Hotels & Resorts (XHR) Moves 8.4% Higher: Will This Strength Last?

·2 min read

Xenia Hotels & Resorts (XHR) shares rallied 8.4% in the last trading session to close at $14.87. 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 24.4% loss over the past four weeks.

This increased optimism is backed by the rebounding fundamentals of the lodging industry, with strong leisure demand and improving levels of corporate and group demand across its markets, and its capacity to leverage growth potential.

This real estate investment trust that owns hotels is expected to post quarterly funds from operations (FFO) of $0.41 per share in its upcoming report, which represents a year-over-year change of +412.5%. Revenues are expected to be $257.42 million, up 69.4% 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.

For Xenia Hotels & Resorts, the consensus FFO per share estimate for the quarter has been revised 2.6% 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 XHR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Xenia Hotels & Resorts belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, CubeSmart (CUBE), closed the last trading session 3.9% higher at $43.52. Over the past month, CUBE has returned -4.4%.

For CubeSmart , the consensus FFO per share estimate for the upcoming report has changed +0.3% over the past month to $0.60. This represents a change of +20% from what the company reported a year ago. CubeSmart currently has a Zacks Rank of #3 (Hold).


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