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

Zacks Equity Research

New Residential Investment (NRZ) closed the most recent trading day at $14.08, moving +0.11% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.06%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.13%.

Heading into today, shares of the real estate investment trust had lost 9.17% over the past month, lagging the Finance sector's loss of 4.6% and the S&P 500's loss of 2.95% in that time.

Wall Street will be looking for positivity from NRZ as it approaches its next earnings report date. The company is expected to report EPS of $0.54, down 14.29% from the prior-year quarter. 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.

Any recent changes to analyst estimates for NRZ should also be noted by investors. 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. Within the past 30 days, our consensus EPS projection has moved 1.68% lower. NRZ currently has a Zacks Rank of #3 (Hold).

Digging into valuation, NRZ currently has a Forward P/E ratio of 6.54. Its industry sports an average Forward P/E of 9.45, 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 112, putting it in the top 44% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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