New Residential Investment (NRZ) Gains But Lags Market: What You Should Know
New Residential Investment (NRZ) closed at $15.42 in the latest trading session, marking a +0.59% move from the prior day. This change lagged the S&P 500’s 0.77% gain on the day. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 0.75%.
Coming into today, shares of the real estate investment trust had lost 3.28% in the past month. In that same time, the Finance sector gained 6.54%, while the S&P 500 gained 8.19%.
Investors will be hoping for strength from NRZ as it approaches its nex t earnings release. The company is expected to report EPS of $0.54, down 6.9% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $240.28 million, down 10.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.19 per share and revenue of $957.36 million, which would represent changes of -7.98% and -9.49%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for NRZ. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NRZ currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, NRZ is holding a Forward P/E ratio of 7.01. This represents a discount compared to its industry’s average Forward P/E of 9.67.
The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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