Why Armour Residential REIT (ARR) Dipped More Than Broader Market Today
The latest trading session saw Armour Residential REIT (ARR) ending at $18.63, denoting a -1.32% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.8%. On the other hand, the Dow registered a loss of 0.76%, and the technology-centric Nasdaq decreased by 1.18%.
Prior to today's trading, shares of the real estate investment trust had 0% over the past month. This has lagged the Finance sector's gain of 5.42% and the S&P 500's gain of 3.4% in that time.
Market participants will be closely following the financial results of Armour Residential REIT in its upcoming release. The company is predicted to post an EPS of $0.90, indicating a 33.33% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $38.2 million, indicating a 131.37% increase compared to the same quarter of the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Armour Residential REIT. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Armour Residential REIT possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Armour Residential REIT is currently being traded at a Forward P/E ratio of 4.92. This represents a discount compared to its industry's average Forward P/E of 8.29.
The REIT and Equity Trust industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 101, placing it within the top 41% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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ARMOUR Residential REIT, Inc. (ARR) : Free Stock Analysis Report
