In the latest trading session, New Residential Investment (NRZ) closed at $9.63, marking a +0.84% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.
Heading into today, shares of the real estate investment trust had lost 15.64% over the past month, lagging the Finance sector's loss of 7.94% and the S&P 500's loss of 6.79% in that time.
New Residential Investment will be looking to display strength as it nears its next earnings release. 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.
Any recent changes to analyst estimates for New Residential Investment should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 has moved 12.11% lower. New Residential Investment is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note New Residential Investment's current valuation metrics, including its Forward P/E ratio of 7.89. This valuation marks a discount compared to its industry's average Forward P/E of 8.25.
The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 141, putting it in the bottom 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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