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Armour Residential REIT (ARR) Stock Sinks As Market Gains: What You Should Know

·3 min read

Armour Residential REIT (ARR) closed at $6.84 in the latest trading session, marking a -1.16% move from the prior day. This change lagged the S&P 500's 0.34% gain on the day. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.02%.

Prior to today's trading, shares of the real estate investment trust had lost 7.98% over the past month. This has lagged the Finance sector's loss of 6.7% and the S&P 500's loss of 7.95% in that time.

Wall Street will be looking for positivity from Armour Residential REIT as it approaches its next earnings report date. In that report, analysts expect Armour Residential REIT to post earnings of $0.31 per share. This would mark year-over-year growth of 24%. Meanwhile, our latest consensus estimate is calling for revenue of $34.84 million, up 70.62% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.17 per share and revenue of $137.97 million, which would represent changes of +21.88% and +87.25%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Armour Residential REIT. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Armour Residential REIT is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Armour Residential REIT's current valuation metrics, including its Forward P/E ratio of 5.91. This represents a discount compared to its industry's average Forward P/E of 9.03.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 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.

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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