In the latest trading session, New Residential Investment (NRZ) closed at $15.34, marking a +1.12% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq gained 0.58%.
Prior to today's trading, shares of the real estate investment trust had lost 5.25% over the past month. This has lagged the Finance sector's gain of 1.17% and the S&P 500's gain of 1.36% in that time.
Investors will be hoping for strength from NRZ as it approaches its next earnings release, which is expected to be July 30, 2019. On that day, NRZ is projected to report earnings of $0.54 per share, which would represent a year-over-year decline of 6.9%. Our most recent consensus estimate is calling for quarterly revenue of $240.28 million, down 10.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.19 per share and revenue of $957.36 million. These totals would mark changes of -7.98% and -9.49%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for NRZ. These recent revisions tend to reflect the evolving nature of short-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. 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 remained stagnant within the past month. NRZ currently has a Zacks Rank of #3 (Hold).
Digging into valuation, NRZ currently has a Forward P/E ratio of 6.94. This represents a discount compared to its industry's average Forward P/E of 9.75.
The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 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.
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