In the latest trading session, New Residential Investment (NRZ) closed at $15.11, marking a +0.33% move from the previous day. This change lagged the S&P 500's 0.72% gain on the day. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 1.06%.
Coming into today, shares of the real estate investment trust had gained 3.72% in the past month. In that same time, the Finance sector gained 2.13%, while the S&P 500 gained 2.25%.
NRZ will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.54, down 14.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $236.92 million, down 9.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.15 per share and revenue of $912.94 million, which would represent changes of -9.66% and -13.69%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for NRZ. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.68% lower. NRZ currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, NRZ is holding a Forward P/E ratio of 7. For comparison, its industry has an average Forward P/E of 9.74, which means NRZ is trading at a discount to the group.
The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.
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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