Strength Seen in DigitalBridge (DBRG): Can Its 5.3% Jump Turn into More Strength?

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DigitalBridge (DBRG) shares ended the last trading session 5.3% higher at $12.81. 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 9.8% gain over the past four weeks.

The increased optimism in the stock stems from the rise in investments in data centers, cell towers, fiber networks, small cells and edge infrastructure amid the growing reliance on technology, acceleration in digital transformation strategies by enterprises and 5G network deployment by wireless carriers.

This provider of asset management services to NorthStar Realty Finance Corp. is expected to post quarterly funds from operations (FFO) of $0.13 per share in its upcoming report, which represents a year-over-year change of +425%. Revenues are expected to be $289.93 million, up 13.3% 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 DigitalBridge, the consensus FFO per share 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 FFO estimate revisions. So, make sure to keep an eye on DBRG 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 >>>>

DigitalBridge is a member of the Zacks REIT and Equity Trust industry. One other stock in the same industry, Apollo Commerical Finance (ARI), finished the last trading session 0.7% lower at $11.80. ARI has returned 5.1% over the past month.

For Apollo Commerical Finance, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.36. This represents a change of +12.5% from what the company reported a year ago. Apollo Commerical Finance currently has a Zacks Rank of #3 (Hold).

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DigitalBridge Group, Inc. (DBRG) : Free Stock Analysis Report

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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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