Ready Capital (RC) Outpaces Stock Market Gains: What You Should Know
Ready Capital (RC) closed at $14.65 in the latest trading session, marking a +1.1% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.19%, and the tech-heavy Nasdaq gained 0.11%.
Prior to today's trading, shares of the real estate investment trust had lost 8.06% over the past month. This has was narrower than the Finance sector's loss of 8.57% and the S&P 500's loss of 8.08% in that time.
Wall Street will be looking for positivity from Ready Capital as it approaches its next earnings report date. On that day, Ready Capital is projected to report earnings of $0.59 per share, which would represent year-over-year growth of 43.9%. Meanwhile, our latest consensus estimate is calling for revenue of $71.51 million, up 216.28% from the prior-year quarter.
RC's full-year Zacks Consensus Estimates are calling for earnings of $2.05 per share and revenue of $293.66 million. These results would represent year-over-year changes of -10.48% and +54.61%, respectively.
Investors might also notice recent changes to analyst estimates for Ready Capital. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 has moved 0.49% lower. Ready Capital currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Ready Capital is currently trading at a Forward P/E ratio of 7.07. Its industry sports an average Forward P/E of 8.39, so we one might conclude that Ready Capital 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 176, which puts it in the bottom 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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