New Residential Investment (NRZ - Free Report) closed at $14.41 in the latest trading session, marking a +0.7% move from the prior day. This change outpaced the S&P 500's 2.06% loss on the day. Meanwhile, the Dow lost 1.81%, and the Nasdaq, a tech-heavy index, lost 2.99%.
Heading into today, shares of the real estate investment trust had lost 14.36% over the past month, lagging the Finance sector's loss of 7.42% and the S&P 500's loss of 6.47% in that time.
Investors will be hoping for strength from NRZ as it approaches its next earnings release, which is expected to be February 12, 2019. On that day, NRZ is projected to report earnings of $0.55 per share, which would represent a year-over-year decline of 9.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $242.80 million, up 3.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.35 per share and revenue of $1.01 billion. These totals would mark changes of -16.96% and -4.73%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NRZ. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. NRZ currently has a Zacks Rank of #2 (Buy).
Digging into valuation, NRZ currently has a Forward P/E ratio of 6.1. Its industry sports an average Forward P/E of 8.31, so we one might conclude that NRZ is trading at a discount comparatively.
Also, we should mention that NRZ has a PEG ratio of 6.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NRZ's industry had an average PEG ratio of 2.22 as of yesterday's close.
The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 46, putting it in the top 18% 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.