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

Zacks Equity Research

Arbor Realty Trust (ABR) closed at $12.31 in the latest trading session, marking a -0.73% move from the prior day. This move lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq added 0.54%.

Coming into today, shares of the real estate investment trust had gained 2.06% in the past month. In that same time, the Finance sector gained 3.18%, while the S&P 500 gained 3.68%.

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.

ABR's full-year Zacks Consensus Estimates are calling for earnings of $1.23 per share and revenue of $303.30 million. These results would represent year-over-year changes of +1.65% and +20.47%, respectively.

Investors might also notice recent changes to analyst estimates for ABR. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ABR currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note ABR's current valuation metrics, including its Forward P/E ratio of 10.12. Its industry sports an average Forward P/E of 15.57, so we one might conclude that ABR is trading at a discount comparatively.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ABR in the coming trading sessions, be sure to utilize Zacks.com.

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