Yahoo Finance What Makes New Residential Investment Corp (NYSE:NRZ) An Attractive Investment?
New Residential Investment Corp (NYSE:NRZ) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of NRZ, it is a highly-regarded dividend payer with a a great history of performance, trading at a discount. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, read the full report on New Residential Investment here.
Outstanding track record, good value and pays a dividend
NRZ delivered a bottom-line expansion of 68.6% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 23.1%. which is an notable feat for the company. NRZ’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, NRZ’s share price is trading below the group’s average. This bolsters the proposition that NRZ’s price is currently discounted.
NRZ is considered one of the top dividend payers in the market, and its profitability ensures that dividends are well-covered by its net income.
Next Steps:
For New Residential Investment, I’ve put together three important factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for NRZ’s future growth? Take a look at our free research report of analyst consensus for NRZ’s outlook.
Financial Health: Are NRZ’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NRZ? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
