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New Residential Investment (NRZ) Gains As Market Dips: What You Should Know

Zacks Equity Research

New Residential Investment (NRZ) closed the most recent trading day at $15.23, moving +0.13% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.06%.

Heading into today, shares of the real estate investment trust had gained 5.04% over the past month, lagging the Finance sector's gain of 5.15% and outpacing the S&P 500's gain of 3.23% in that time.

Wall Street will be looking for positivity from NRZ as it approaches its next earnings report date. On that day, NRZ is projected to report earnings of $0.54 per share, which would represent a year-over-year decline of 14.29%. Meanwhile, our latest consensus estimate is calling for revenue of $236.92 million, down 9.82% from the prior-year quarter.

NRZ's full-year Zacks Consensus Estimates are calling for earnings of $2.15 per share and revenue of $912.94 million. These results would represent year-over-year changes of -9.66% and -13.69%, 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. 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, 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 0.69% lower within the past month. NRZ is currently a Zacks Rank #3 (Hold).

Looking at its valuation, NRZ is holding a Forward P/E ratio of 7.07. Its industry sports an average Forward P/E of 10.04, so we one might conclude that NRZ is trading at a discount comparatively.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.

To follow NRZ in the coming trading sessions, be sure to utilize Zacks.com.


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