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Rithm (RITM) Gains But Lags Market: What You Should Know

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In the latest trading session, Rithm (RITM - Free Report) closed at $9.33, marking a +0.21% move from the previous day. This move lagged the S&P 500's daily gain of 0.25%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 7.26%.

Heading into today, shares of the real estate investment trust had gained 12.58% over the past month, outpacing the Finance sector's gain of 7.22% and the S&P 500's gain of 5.73% in that time.

Rithm will be looking to display strength as it nears its next earnings release, which is expected to be February 8, 2023. On that day, Rithm is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 27.5%. Meanwhile, our latest consensus estimate is calling for revenue of $690.66 million, up 217.46% from the prior-year quarter.

Any recent changes to analyst estimates for Rithm should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Rithm is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Rithm currently has a Forward P/E ratio of 7.09. This represents a discount compared to its industry's average Forward P/E of 9.01.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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