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Arbor Realty Trust (ABR) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Arbor Realty Trust (ABR) closed at $13.12 in the latest trading session, marking a +0.85% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.51%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.75%.

Coming into today, shares of the real estate investment trust had gained 3.67% in the past month. In that same time, the Finance sector gained 5.33%, while the S&P 500 gained 3.44%.

Investors will be hoping for strength from ABR as it approaches its next earnings release. Our most recent consensus estimate is calling for quarterly revenue of $85.40 million, up 26.52% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.33 per share and revenue of $323.70 million, which would represent changes of +9.92% and +28.57%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ABR. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ABR is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, ABR is currently trading at a Forward P/E ratio of 9.78. This represents a discount compared to its industry's average Forward P/E of 16.02.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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