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Starwood Property Trust (STWD) Outpaces Stock Market Gains: What You Should Know

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Starwood Property Trust (STWD - Free Report) closed at $20.69 in the latest trading session, marking a +1.92% move from the prior day. This change outpaced the S&P 500's 0.25% gain on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 7.26%.

Coming into today, shares of the commercial real estate investment trust had gained 10.39% in the past month. In that same time, the Finance sector gained 7.22%, while the S&P 500 gained 5.73%.

Investors will be hoping for strength from Starwood Property Trust as it approaches its next earnings release, which is expected to be March 1, 2023. On that day, Starwood Property Trust is projected to report earnings of $0.50 per share, which would represent a year-over-year decline of 54.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $463.2 million, up 59.88% from the year-ago period.

Any recent changes to analyst estimates for Starwood Property Trust should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Starwood Property Trust is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Starwood Property Trust is currently trading at a Forward P/E ratio of 9.58. For comparison, its industry has an average Forward P/E of 8, which means Starwood Property 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 173, which puts it in the bottom 32% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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