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

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Starwood Property Trust (STWD - Free Report) closed the most recent trading day at $18.97, moving -0.94% from the previous trading session. This change lagged the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 4.09%.

Heading into today, shares of the commercial real estate investment trust had gained 17.34% over the past month, outpacing the Finance sector's gain of 3.37% and the S&P 500's gain of 3.98% in that time.

Starwood Property Trust will be looking to display strength as it nears its next earnings release. In that report, analysts expect Starwood Property Trust to post earnings of $0.48 per share. This would mark a year-over-year decline of 5.88%. Meanwhile, our latest consensus estimate is calling for revenue of $508 million, up 56.02% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.90 per share and revenue of $2.03 billion, which would represent changes of -16.67% and +38.66%, respectively, from the prior year.

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

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Starwood Property Trust is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Starwood Property Trust is currently trading at a Forward P/E ratio of 10.1. For comparison, its industry has an average Forward P/E of 7.71, 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 group has a Zacks Industry Rank of 240, putting it in the bottom 5% 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.

To follow STWD in the coming trading sessions, be sure to utilize Zacks.com.


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