New Residential Investment (NRZ) Gains But Lags Market: What You Should Know
New Residential Investment (NRZ) closed the most recent trading day at $10.37, moving +0.1% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.57%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.08%.
Heading into today, shares of the real estate investment trust had lost 4.52% over the past month, outpacing the Finance sector's loss of 6.24% and the S&P 500's loss of 5.26% in that time.
New Residential Investment will be looking to display strength as it nears its next earnings release, which is expected to be May 3, 2022. The company is expected to report EPS of $0.34, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $228.55 million, up 69.51% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.40 per share and revenue of $989.1 million. These totals would mark changes of -5.41% and +43.32%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for New Residential Investment. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 12.34% lower within the past month. New Residential Investment is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that New Residential Investment has a Forward P/E ratio of 7.42 right now. Its industry sports an average Forward P/E of 8.52, so we one might conclude that New Residential Investment 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 188, which puts it in the bottom 26% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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