Cushman & Wakefield (CWK) Moves 5.5% Higher: Will This Strength Last?

Shares of Cushman & Wakefield ( CWK ) closed the last trading session 5.5% higher at $15.72. The jump came on impressive volume, with a higher-than-average number of shares changing hands in the session. That compares with the stock’s 4.4% loss over the past four weeks.

This heightened optimism can be attributed to the company’s better-than-expected Q4 2020 earnings from its resilient businesses and cost-saving efforts. Perhaps the company’s arrangement of $69.5 million in financing for its 1.2 million-square-foot industrial portfolio in Philadelphia and southern New Jersey also acted as a tailwind.

Price and consensus

This company is expected to post a quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of -233.3%. Revenue is expected to be $1.75 billion, down 7.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in assessing a stock’s potential strength, empirical research shows a strong correlation between earnings estimate revision trends and short-term stock price movements.

For Cushman & Wakefield, the EPS consensus estimate for the quarter was revised 16.7% higher over the last 30 days to the current level. And a positive trend in the revision of earnings estimates usually translates into price appreciation. So be sure to keep an eye on CWK to see if this recent jump can translate into more power down the road.

The stock currently has a Zacks Rank of 3 (Hold). You can see today’s full list of Zacks Rank #1 (Strong Buy) stocks here >>>>

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