Armour Residential REIT (ARR) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Armour Residential REIT (ARR) closed at $7, marking a -1.41% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.46%, and the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the real estate investment trust had lost 7.79% over the past month, lagging the Finance sector's loss of 1.92% and the S&P 500's loss of 4.13% in that time.
Investors will be hoping for strength from Armour Residential REIT as it approaches its next earnings release. On that day, Armour Residential REIT is projected to report earnings of $0.31 per share, which would represent year-over-year growth of 24%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.84 million, up 70.62% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.17 per share and revenue of $137.97 million. These totals would mark changes of +21.88% and +87.25%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Armour Residential REIT. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Armour Residential REIT currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Armour Residential REIT is holding a Forward P/E ratio of 6.07. This represents a discount compared to its industry's average Forward P/E of 8.94.
The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% 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.
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