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New Residential Investment (NRZ) Gains But Lags Market: What You Should Know

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New Residential Investment (NRZ) closed at $9.36 in the latest trading session, marking a +0.75% move from the prior day. The stock lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.15%.

Coming into today, shares of the real estate investment trust had lost 14.38% in the past month. In that same time, the Finance sector lost 4.55%, while the S&P 500 lost 3.49%.

New Residential Investment will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.23, down 25.81% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $252.3 million, up 71.47% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.16 per share and revenue of $1.05 billion. These totals would mark changes of -21.62% and +51.57%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for New Residential Investment. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 15.5% lower. New Residential Investment currently has a Zacks Rank of #3 (Hold).

In terms of valuation, New Residential Investment is currently trading at a Forward P/E ratio of 7.99. This valuation marks a discount compared to its industry's average Forward P/E of 8.39.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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