Armour Residential REIT (ARR) Stock Sinks As Market Gains: What You Should Know
Armour Residential REIT (ARR) closed the most recent trading day at $8.80, moving -0.23% from the previous trading session. This move lagged the S&P 500's daily gain of 3.06%. Elsewhere, the Dow gained 2.39%, while the tech-heavy Nasdaq added 3.95%.
Heading into today, shares of the real estate investment trust had lost 25% over the past month, lagging the Finance sector's loss of 3.09% and the S&P 500's gain of 2.36% in that time.
Investors will be hoping for strength from ARR as it approaches its next earnings release.
It is also important to note the recent changes to analyst estimates for ARR. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. ARR currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that ARR has a Forward P/E ratio of 3.92 right now. Its industry sports an average Forward P/E of 6.53, so we one might conclude that ARR is trading at a discount comparatively.
The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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ARMOUR Residential REIT, Inc. (ARR) : Free Stock Analysis Report
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