New Residential Investment (NRZ) closed the most recent trading day at $7.65, moving -1.16% from the previous trading session. This change lagged the S&P 500’s daily gain of 0.75%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 1.4%.
Prior to today’s trading, shares of the real estate investment trust had lost 1.28% over the past month. This has lagged the Finance sector’s gain of 4.26% and the S&P 500’s gain of 7% in that time.
Wall Street will be looking for positivity from NRZ as it approaches its next earnings report date. In that report, analysts expect NRZ to post earnings of $0.33 per share. This would mark a year-over-year decline of 34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $105.71 million, down 47.73% from the year-ago period.
NRZ’s full-year Zacks Consensus Estimates are calling for earnings of $1.38 per share and revenue of $510.30 million. These results would represent year-over-year changes of -36.41% and -38.69%, respectively.
It is also important to note the recent changes to analyst estimates for NRZ. 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 has moved 11.07% higher. NRZ is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, NRZ is holding a Forward P/E ratio of 5.61. Its industry sports an average Forward P/E of 8.94, 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 group has a Zacks Industry Rank of 208, putting it in the bottom 19% 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.