New Residential Investment (NRZ) Gains But Lags Market: What You Should Know
New Residential Investment (NRZ) closed at $16.09 in the latest trading session, marking a +0.63% move from the prior day. The stock lagged the S&P 500's daily gain of 0.76%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 0.71%.
Coming into today, shares of the real estate investment trust had gained 7.32% in the past month. In that same time, the Finance sector gained 4.01%, while the S&P 500 gained 0.75%.
Investors will be hoping for strength from NRZ as it approaches its next earnings release, which is expected to be February 12, 2019. The company is expected to report EPS of $0.55, down 9.84% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $210.42 million, down 10.56% from the year-ago period.
Investors should also note any recent changes to analyst estimates for NRZ. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 1.66% lower within the past month. NRZ currently has a Zacks Rank of #3 (Hold).
In terms of valuation, NRZ is currently trading at a Forward P/E ratio of 6.9. This represents a discount compared to its industry's average Forward P/E of 9.16.
We can also see that NRZ currently has a PEG ratio of 6.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. REIT and Equity Trust stocks are, on average, holding a PEG ratio of 2.45 based on yesterday's closing prices.
The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 20% 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.
To follow NRZ in the coming trading sessions, be sure to utilize Zacks.com.
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