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Arbor Realty Trust (ABR) Gains But Lags Market: What You Should Know

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Arbor Realty Trust (ABR - Free Report) closed at $17.06 in the latest trading session, marking a +0.41% move from the prior day. This move lagged the S&P 500's daily gain of 2.44%. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 0.28%.

Coming into today, shares of the real estate investment trust had lost 7.81% in the past month. In that same time, the Finance sector lost 3.64%, while the S&P 500 lost 9.65%.

Investors will be hoping for strength from Arbor Realty Trust as it approaches its next earnings release. The company is expected to report EPS of $0.40, down 18.37% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $139.4 million, up 61.79% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Arbor Realty Trust. These revisions help to show the ever-changing nature of near-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 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 remained stagnant. Arbor Realty Trust currently has a Zacks Rank of #3 (Hold).

Investors should also note Arbor Realty Trust's current valuation metrics, including its Forward P/E ratio of 9.88. For comparison, its industry has an average Forward P/E of 8.48, which means Arbor Realty Trust is trading at a premium to the group.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 40% 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.

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