Back to top

Image: Bigstock

Armour Residential REIT (ARR) Surpasses Market Returns: Some Facts Worth Knowing

Read MoreHide Full Article

Armour Residential REIT (ARR - Free Report) ended the recent trading session at $18.56, demonstrating a +0.38% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.06%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.24%.

Coming into today, shares of the real estate investment trust had lost 7.46% in the past month. In that same time, the Finance sector gained 1.32%, while the S&P 500 gained 6.45%.

The upcoming earnings release of Armour Residential REIT will be of great interest to investors. It is anticipated that the company will report an EPS of $0.90, marking a 33.33% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $38.2 million, up 131.37% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Armour Residential REIT. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Armour Residential REIT holds a Zacks Rank of #3 (Hold).

With respect to valuation, Armour Residential REIT is currently being traded at a Forward P/E ratio of 4.82. This denotes a discount relative to the industry's average Forward P/E of 7.19.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

ARMOUR Residential REIT, Inc. (ARR) - free report >>

Published in