Starwood Property Trust (STWD) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Starwood Property Trust (STWD) closed at $19.15, marking a -1.29% move from the previous day. This move lagged the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.
Prior to today's trading, shares of the commercial real estate investment trust had gained 2.86% over the past month. This has lagged the Finance sector's gain of 3.99% and the S&P 500's gain of 4.16% in that time.
Wall Street will be looking for positivity from Starwood Property Trust as it approaches its next earnings report date. The company is expected to report EPS of $0.48, down 5.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $508 million, up 56.02% from the year-ago period.
STWD's full-year Zacks Consensus Estimates are calling for earnings of $1.89 per share and revenue of $2.03 billion. These results would represent year-over-year changes of -17.11% and +38.66%, respectively.
Investors might also notice recent changes to analyst estimates for Starwood Property Trust. 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.
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.
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. Starwood Property Trust is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Starwood Property Trust has a Forward P/E ratio of 10.25 right now. For comparison, its industry has an average Forward P/E of 7.69, which means Starwood Property Trust is trading at a premium to the group.
The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 13% 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 STWD in the coming trading sessions, be sure to utilize Zacks.com.
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STARWOOD PROPERTY TRUST, INC. (STWD) : Free Stock Analysis Report
