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

Zacks Equity Research

New Residential Investment (NRZ) closed the most recent trading day at $15.30, moving -0.65% from the previous trading session. This change lagged the S&P 500's daily gain of 0.12%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq gained 0.54%.

Prior to today's trading, shares of the real estate investment trust had gained 0.52% over the past month. This has lagged the Finance sector's gain of 3.18% and the S&P 500's gain of 3.68% 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 6.9% from the prior-year quarter. 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.

Investors might also notice recent changes to analyst estimates for NRZ. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 remained stagnant. NRZ is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, NRZ is currently trading at a Forward P/E ratio of 7.04. For comparison, its industry has an average Forward P/E of 9.74, 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 200, putting it in the bottom 22% 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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