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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 $12.32 in the latest trading session, marking a +0.16% move from the prior day. This move outpaced the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.62%.

Prior to today's trading, shares of the real estate investment trust had lost 5.02% over the past month. This has lagged the Finance sector's gain of 1.07% and the S&P 500's gain of 2.08% in that time.

Investors will be hoping for strength from ABR as it approaches its next earnings release. The company is expected to report EPS of $0.28, down 9.68% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $73.10 million, up 23.27% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.23 per share and revenue of $303.30 million, which would represent changes of +1.65% and +20.47%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 9.52% higher. ABR currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that ABR has a Forward P/E ratio of 10.04 right now. This represents a discount compared to its industry's average Forward P/E of 15.5.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.

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


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