Clipper Realty Soars 9.9%: Is Further Upside Left in the Stock?

Clipper Realty Inc. CLPR shares soared 9.9% in the last trading session to close at $6.65. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 12.7% gain over the past four weeks.

The increased investor optimism in the stock can be attributed to the favorable operating environment.

This company is expected to post quarterly funds from operations (FFO) of $0.12 per share in its upcoming report, which represents a year-over-year change of -20%. Revenues are expected to be $38 million, up 8.2% from the year-ago quarter.

FFO and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in FFO estimate revisions are strongly correlated with near-term stock price movements.

For Clipper Realty, the consensus FFP per share estimate for the quarter has been revised 33.3% 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 CLPR 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).

Clipper Realty is part of the Zacks REIT and Equity Trust – Other industry. NNN REIT NNN, another stock in the same industry, closed the last trading session 1% higher at $47.95. NNN has returned -2.6% in the past month.

For NNN REIT, the consensus FFO per share estimate for the upcoming report has remained unchanged over the past month at $0.84. This represents a change of +2.4% from what the company reported a year ago. NNN REIT currently has a Zacks Rank of #3 (Hold).

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