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New Residential Investment (NRZ) Outpaces Stock Market Gains: What You Should Know

·3 min read

New Residential Investment (NRZ) closed at $10.33 in the latest trading session, marking a +1.37% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.04%.

Prior to today's trading, shares of the real estate investment trust had gained 3.77% over the past month. This has outpaced the Finance sector's gain of 3.26% and lagged the S&P 500's gain of 5.55% in that time.

Investors will be hoping for strength from New Residential Investment as it approaches its next earnings release, which is expected to be August 2, 2022. On that day, New Residential Investment is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 6.45%. 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 $1.21 per share and revenue of $1.04 billion. These totals would mark changes of -18.24% and +50.29%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for New Residential Investment. These revisions help to show the ever-changing nature of 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. 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.

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 remained stagnant. New Residential Investment is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, New Residential Investment currently has a Forward P/E ratio of 8.42. Its industry sports an average Forward P/E of 8.83, so we one might conclude that New Residential Investment is trading at a discount comparatively.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 129, which puts it in the bottom 49% 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.

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

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