New Residential Investment (NRZ) Gains But Lags Market: What You Should Know
New Residential Investment (NRZ) closed at $16.60 in the latest trading session, marking a +0.15% move from the prior day. This change lagged the S&P 500's 0.66% gain on the day. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.46%.
Prior to today's trading, shares of the real estate investment trust had lost 1.37% over the past month. This has lagged the Finance sector's gain of 1.89% and the S&P 500's gain of 3.97% in that time.
NRZ will be looking to display strength as it nears its next earnings release. In that report, analysts expect NRZ to post earnings of $0.55 per share. This would mark a year-over-year decline of 5.17%. Our most recent consensus estimate is calling for quarterly revenue of $190.82 million, down 26.38% from the year-ago period.
NRZ's full-year Zacks Consensus Estimates are calling for earnings of $2.27 per share and revenue of $800.53 million. These results would represent year-over-year changes of -4.62% and -24.32%, respectively.
It is also important to note the recent changes to analyst estimates for NRZ. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.41% lower. NRZ currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that NRZ has a Forward P/E ratio of 7.3 right now. Its industry sports an average Forward P/E of 9.05, so we one might conclude that NRZ is trading at a discount comparatively.
The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.