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Is New Residential Investment (NRZ) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is New Residential Investment (NRZ). NRZ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.59, while its industry has an average P/E of 10.76. Over the past 52 weeks, NRZ's Forward P/E has been as high as 12.97 and as low as 1.56, with a median of 6.18.

Investors should also recognize that NRZ has a P/B ratio of 0.85. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 0.93. Within the past 52 weeks, NRZ's P/B has been as high as 1.08 and as low as 0.28, with a median of 0.73.

Value investors will likely look at more than just these metrics, but the above data helps show that New Residential Investment is likely undervalued currently. And when considering the strength of its earnings outlook, NRZ sticks out at as one of the market's strongest value stocks.


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