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Armour Residential REIT (ARR) Outpaces Stock Market Gains: What You Should Know

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Armour Residential REIT (ARR - Free Report) closed at $5.07 in the latest trading session, marking a +1.6% move from the prior day. This move outpaced the S&P 500's daily gain of 1.42%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 5.16%.

Heading into today, shares of the real estate investment trust had lost 8.1% over the past month, lagging the Finance sector's loss of 7.84% and the S&P 500's gain of 0.27% in that time.

Wall Street will be looking for positivity from Armour Residential REIT as it approaches its next earnings report date. On that day, Armour Residential REIT is projected to report earnings of $0.25 per share, which would represent a year-over-year decline of 10.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $58.72 million, up 89.78% from the year-ago period.

ARR's full-year Zacks Consensus Estimates are calling for earnings of $1.09 per share and revenue of $253.99 million. These results would represent year-over-year changes of -6.03% and +135.96%, respectively.

Investors might also notice recent changes to analyst estimates for Armour Residential REIT. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Armour Residential REIT is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Armour Residential REIT has a Forward P/E ratio of 4.58 right now. Its industry sports an average Forward P/E of 6.69, so we one might conclude that Armour Residential REIT is trading at a discount comparatively.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% 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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