Newmark Group (NMRK) Dips More Than Broader Markets: What You Should Know
Newmark Group (NMRK) closed at $8.36 in the latest trading session, marking a -0.95% move from the prior day. This move lagged the S&P 500's daily loss of 0.16%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.52%.
Coming into today, shares of the provider of commercial real estate services had 0% in the past month. In that same time, the Finance sector gained 1.87%, while the S&P 500 gained 3.12%.
NMRK will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.28, up 12% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $507 million, up 8.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.63 per share and revenue of $2.21 billion. These totals would mark changes of +7.24% and +7.9%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for NMRK. These revisions help to show the ever-changing nature of near-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NMRK is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that NMRK has a Forward P/E ratio of 5.19 right now. This valuation marks a discount compared to its industry's average Forward P/E of 14.51.
We can also see that NMRK currently has a PEG ratio of 0.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Real Estate - Operations industry currently had an average PEG ratio of 1.9 as of yesterday's close.
The Real Estate - Operations industry is part of the Finance sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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.