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New Residential Investment (NRZ) Outpaces Stock Market Gains: What You Should Know

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New Residential Investment (NRZ - Free Report) closed at $15.55 in the latest trading session, marking a +0.84% move from the prior day. This change outpaced the S&P 500's 0.41% gain on the day. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq added 0.57%.

Prior to today's trading, shares of the real estate investment trust had lost 7.55% over the past month. This has lagged the Finance sector's loss of 0.77% and the S&P 500's gain of 0.1% in that time.

NRZ will be looking to display strength as it nears its next earnings release. In that report, analysts expect NRZ to post earnings of $0.54 per share. This would mark a year-over-year decline of 6.9%. Meanwhile, our latest consensus estimate is calling for revenue of $240.28 million, down 10.97% from the prior-year quarter.

NRZ's full-year Zacks Consensus Estimates are calling for earnings of $2.19 per share and revenue of $957.36 million. These results would represent year-over-year changes of -7.98% and -9.49%, respectively.

Investors might also notice recent changes to analyst estimates for NRZ. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 has moved 0.3% lower within the past month. NRZ is currently a Zacks Rank #3 (Hold).

Looking at its valuation, NRZ is holding a Forward P/E ratio of 7.05. For comparison, its industry has an average Forward P/E of 9.71, which means NRZ is trading at a discount to the group.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 240, which puts it in the bottom 7% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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