Howard Hughes Holdings (HHH) Surges 9.5%: Is This an Indication of Further Gains?

Howard Hughes Holdings HHH shares rallied 9.5% in the last trading session to close at $78.62. 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 12.5% loss over the past four weeks.

The increased investor optimism in the stock can be attributed to the unsolicited acquisition proposal received from Pershing Square Capital Management LP. The proposal is to acquire additional shares of HHH’s common stock in a merger transaction. As a result of this merger, Pershing Square would own a majority of the company’s common stock.

This land developer is expected to post quarterly earnings of $3.69 per share in its upcoming report, which represents a year-over-year change of +434.8%. Revenues are expected to be $942.16 million, up 180.5% from the year-ago quarter.

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

For Howard Hughes Holdings, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HHH 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 >>>>

Howard Hughes Holdings is part of the Zacks Real Estate - Development industry. Landsea Homes LSEA, another stock in the same industry, closed the last trading session 0.8% lower at $7.72. LSEA has returned -21.2% in the past month.

For Landsea, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.55. This represents a change of +27.9% from what the company reported a year ago. Landsea currently has a Zacks Rank of #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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