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New Residential Investment (NRZ) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, New Residential Investment (NRZ) closed at $5.52, marking a -0.27% move from the previous day. This move lagged the S&P 500's daily loss of 0.05%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.01%.

Coming into today, shares of the real estate investment trust had gained 6.55% in the past month. In that same time, the Finance sector gained 13.55%, while the S&P 500 gained 21.82%.

NRZ will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.24, down 54.72% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $215.46 million, down 4.68% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.20 per share and revenue of $876.50 million, which would represent changes of -44.7% and +5.3%, respectively, from the prior year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 43.54% lower within the past month. NRZ is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that NRZ has a Forward P/E ratio of 4.63 right now. This valuation marks a discount compared to its industry's average Forward P/E of 5.91.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 31% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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