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

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New Residential Investment (NRZ) closed at $9.12 in the latest trading session, marking a +0.33% move from the prior day. This change lagged the S&P 500's 1.46% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Coming into today, shares of the real estate investment trust had lost 18.91% in the past month. In that same time, the Finance sector lost 6.38%, while the S&P 500 lost 6.94%.

New Residential Investment will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.25, down 19.35% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $252.3 million, up 71.47% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.16 per share and revenue of $1.05 billion. These totals would mark changes of -21.62% and +51.57%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for New Residential Investment. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 14.67% lower. New Residential Investment is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, New Residential Investment currently has a Forward P/E ratio of 7.81. This represents a premium compared to its industry's average Forward P/E of 7.79.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% 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.

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


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