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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 $15.45, moving +0.26% from the previous trading session. This change outpaced the S&P 500's 0.02% gain on the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.17%.

Coming into today, shares of the real estate investment trust had lost 0.9% in the past month. In that same time, the Finance sector gained 3.84%, while the S&P 500 gained 4.82%.

NRZ will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.54, down 6.9% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $240.28 million, down 10.97% from the prior-year quarter.

NRZ's full-year Zacks Consensus Estimates are calling for earnings of $2.19 per share and revenue of $957.36 million. These results would represent year-over-year changes of -7.98% and -9.49%, respectively.

It is also important to note the recent changes to analyst estimates for NRZ. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NRZ is currently a Zacks Rank #4 (Sell).

Digging into valuation, NRZ currently has a Forward P/E ratio of 7.05. This valuation marks a discount compared to its industry's average Forward P/E of 9.9.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 19% 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.

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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