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New Residential Investment (NRZ) Gains But Lags Market: What You Should Know

Zacks Equity Research

New Residential Investment (NRZ) closed at $15.44 in the latest trading session, marking a +0.72% move from the prior day. This move lagged the S&P 500's daily gain of 1%.

Prior to today's trading, shares of the real estate investment trust had gained 1.46% over the past month. This has outpaced the Finance sector's loss of 1.6% and the S&P 500's loss of 1.22% in that time.

Investors will be hoping for strength from NRZ as it approaches its next earnings release. In that report, analysts expect NRZ to post earnings of $0.52 per share. This would mark a year-over-year decline of 17.46%. Our most recent consensus estimate is calling for quarterly revenue of $225.56 million, down 14.14% from the year-ago period.

NRZ's full-year Zacks Consensus Estimates are calling for earnings of $2.13 per share and revenue of $881.92 million. These results would represent year-over-year changes of -10.5% and -16.63%, respectively.

It is also important to note the recent changes to analyst estimates for NRZ. These revisions help to show the ever-changing nature of near-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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.16% lower within the past month. NRZ currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that NRZ has a Forward P/E ratio of 7.21 right now. This valuation marks a discount compared to its industry's average Forward P/E of 9.91.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 41% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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