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Starwood Property Trust (STWD) Gains But Lags Market: What You Should Know

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In the latest trading session, Starwood Property Trust (STWD - Free Report) closed at $19.49, marking a +1.19% move from the previous day. This change lagged the S&P 500's 1.22% gain on the day. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 4.63%.

Prior to today's trading, shares of the commercial real estate investment trust had gained 14.3% over the past month. This has outpaced the Finance sector's gain of 5.82% and the S&P 500's gain of 6.22% in that time.

Starwood Property Trust will be looking to display strength as it nears its next earnings release. On that day, Starwood Property Trust is projected to report earnings of $0.48 per share, which would represent a year-over-year decline of 5.88%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $508 million, up 56.02% from the year-ago period.

STWD's full-year Zacks Consensus Estimates are calling for earnings of $1.90 per share and revenue of $2.03 billion. These results would represent year-over-year changes of -16.67% and +38.66%, respectively.

It is also important to note the recent changes to analyst estimates for Starwood Property Trust. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Starwood Property Trust currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Starwood Property Trust is currently trading at a Forward P/E ratio of 10.15. This represents a premium compared to its industry's average Forward P/E of 7.69.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 244, which puts it in the bottom 4% 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.

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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