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Armour Residential REIT (ARR) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3 min read

In the latest trading session, Armour Residential REIT (ARR) closed at $5.34, marking a +0.95% move from the previous day. The stock lagged the S&P 500's daily gain of 1.97%. Elsewhere, the Dow gained 1.88%, while the tech-heavy Nasdaq added 0.24%.

Heading into today, shares of the real estate investment trust had lost 24.97% over the past month, lagging the Finance sector's loss of 9.76% and the S&P 500's loss of 9.93% in that time.

Armour Residential REIT will be looking to display strength as it nears its next earnings release. In that report, analysts expect Armour Residential REIT to post earnings of $0.31 per share. This would mark year-over-year growth of 24%. Our most recent consensus estimate is calling for quarterly revenue of $34.84 million, up 70.62% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.17 per share and revenue of $137.97 million, which would represent changes of +21.88% and +87.25%, respectively, from the prior year.

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Any recent changes to analyst estimates for Armour Residential REIT should also be noted by investors. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Armour Residential REIT is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Armour Residential REIT is holding a Forward P/E ratio of 4.52. This represents a discount compared to its industry's average Forward P/E of 7.48.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow ARR in the coming trading sessions, be sure to utilize Zacks.com.


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Zacks Investment Research