Armour Residential REIT (ARR) closed the most recent trading day at $4.21, moving -0.24% from the previous trading session. This change lagged the S&P 500's 0.59% gain on the day. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, added 0.83%.
Prior to today's trading, shares of the real estate investment trust had lost 13.88% over the past month. This has lagged the Finance sector's loss of 1.79% and the S&P 500's loss of 2.84% in that time.
Investors will be hoping for strength from Armour Residential REIT as it approaches its next earnings release. The company is expected to report EPS of $0.23, down 28.13% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.51 million, down 82.08% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.98 per share and revenue of $26.85 million, which would represent changes of -15.52% and -75.05%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Armour Residential REIT. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Armour Residential REIT currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Armour Residential REIT is currently trading at a Forward P/E ratio of 4.31. Its industry sports an average Forward P/E of 7.02, so we one might conclude that Armour Residential REIT is trading at a discount comparatively.
The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 28% 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.
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