Back to top

Image: Bigstock

Newtek (NEWT) Stock Moves -1.43%: What You Should Know

Read MoreHide Full Article

Newtek (NEWT - Free Report) closed at $18.66 in the latest trading session, marking a -1.43% move from the prior day. This change was narrower than the S&P 500's 1.71% loss on the day. At the same time, the Dow lost 1.7%, and the tech-heavy Nasdaq lost 0.09%.

Coming into today, shares of the provider of financial and business services to small-and medium-sized business had lost 12.28% in the past month. In that same time, the Finance sector lost 6.28%, while the S&P 500 lost 8.68%.

Newtek will be looking to display strength as it nears its next earnings release. In that report, analysts expect Newtek to post earnings of $0.65 per share. This would mark year-over-year growth of 16.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.87 million, up 76.23% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.87 per share and revenue of $85.31 million. These totals would mark changes of -17.29% and -21.37%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Newtek. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant within the past month. Newtek is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, Newtek currently has a Forward P/E ratio of 6.6. Its industry sports an average Forward P/E of 9.28, so we one might conclude that Newtek is trading at a discount comparatively.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Newtek Business Services Corp. (NEWT) - free report >>

Published in