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New Residential Investment (NRZ) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, New Residential Investment (NRZ) closed at $14.31, marking a +1.49% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.3%. Elsewhere, the Dow gained 1.41%, while the tech-heavy Nasdaq added 1.75%.

Prior to today's trading, shares of the real estate investment trust had lost 6.37% over the past month. This has lagged the Finance sector's loss of 1.4% and the S&P 500's gain of 0.46% in that time.

Investors will be hoping for strength from NRZ as it approaches its next earnings release. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $236.92 million, down 9.82% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.15 per share and revenue of $912.94 million, which would represent changes of -9.66% and -13.69%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for NRZ. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.68% lower. NRZ is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that NRZ has a Forward P/E ratio of 6.56 right now. For comparison, its industry has an average Forward P/E of 9.58, which means NRZ is trading at a discount to the group.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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