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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 at $19.26 in the latest trading session, marking a -1.03% move from the prior day. This change lagged the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.99%.

Prior to today's trading, shares of the commercial real estate investment trust had gained 10.88% over the past month. This has outpaced the Finance sector's gain of 3.63% and the S&P 500's gain of 4.25% in that time.

Wall Street will be looking for positivity from Starwood Property Trust as it approaches its next earnings report date. 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 $1.89 per share and revenue of $2.03 billion. These results would represent year-over-year changes of -17.11% and +38.66%, respectively.

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

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.

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 10.28. Its industry sports an average Forward P/E of 7.74, so we one might conclude that Starwood Property Trust is trading at a premium comparatively.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 225, putting it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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


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