Why Are RE/MAX (RMAX) Shares Soaring Today

What Happened:

Shares of real estate franchise company RE/MAX (NYSE:RMAX) jumped 15.1% in the morning session after the company reported first-quarter results that topped analysts' revenue expectations. Its EPS also narrowly outperformed Wall Street's estimates. That the company reaffirmed full year revenue and adjusted EBITDA guidance means the company is on track. 

On the other hand, its operating margin missed, and its number of agents fell short of Wall Street's estimates. Overall, this was a decent quarter for RE/MAX.

Is now the time to buy RE/MAX? Access our full analysis report here, it's free.

What is the market telling us:

RE/MAX's shares are somewhat volatile and over the last year have had 34 moves greater than 5%. But moves this big are very rare even for RE/MAX and that is indicating to us that this news had a significant impact on the market's perception of the business. 

RE/MAX is down 38% since the beginning of the year, and at $7.89 per share it is trading 61.5% below its 52-week high of $20.47 from July 2023. Investors who bought $1,000 worth of RE/MAX's shares 5 years ago would now be looking at an investment worth $195.95.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.