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New Residential Investment (NRZ) Gains But Lags Market: What You Should Know

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New Residential Investment (NRZ - Free Report) closed at $16.69 in the latest trading session, marking a +0.06% move from the prior day. This change lagged the S&P 500's 0.46% gain on the day. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.59%.

Coming into today, shares of the real estate investment trust had gained 1.58% in the past month. In that same time, the Finance sector gained 0.89%, while the S&P 500 gained 3.24%.

Investors will be hoping for strength from NRZ as it approaches its next earnings release. In that report, analysts expect NRZ to post earnings of $0.55 per share. This would mark a year-over-year decline of 5.17%. Meanwhile, our latest consensus estimate is calling for revenue of $190.82 million, down 26.38% from the prior-year quarter.

NRZ's full-year Zacks Consensus Estimates are calling for earnings of $2.27 per share and revenue of $800.53 million. These results would represent year-over-year changes of -4.62% and -24.32%, respectively.

It is also important to note the recent changes to analyst estimates for NRZ. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.41% lower. NRZ is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, NRZ is currently trading at a Forward P/E ratio of 7.35. Its industry sports an average Forward P/E of 9.09, so we one might conclude that NRZ is trading at a discount comparatively.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% 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.

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