Newtek (NEWT) Gains But Lags Market: What You Should Know

Newtek (NEWT) closed the most recent trading day at $15.25, moving +0.59% from the previous trading session. This move lagged the S&P 500's daily gain of 2.37%. Elsewhere, the Dow gained 2.47%, while the tech-heavy Nasdaq lost 0.02%.

Heading into today, shares of the provider of financial and business services to small-and medium-sized business had lost 14.54% over the past month, lagging the Finance sector's loss of 5.94% and the S&P 500's loss of 4.82% in that time.

Newtek will be looking to display strength as it nears its next earnings release. On that day, Newtek is projected to report earnings of $0.65 per share, which would represent year-over-year growth of 16.07%. Meanwhile, our latest consensus estimate is calling for revenue of $21.87 million, up 76.23% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.87 per share and revenue of $85.31 million, which would represent changes of -17.29% and -21.37%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Newtek. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Newtek currently has a Zacks Rank of #3 (Hold).

Investors should also note Newtek's current valuation metrics, including its Forward P/E ratio of 5.28. This valuation marks a discount compared to its industry's average Forward P/E of 8.4.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% 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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