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New Residential Investment (NRZ) Gains As Market Dips: What You Should Know

Zacks Equity Research

New Residential Investment (NRZ) closed the most recent trading day at $15.89, moving +0.38% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq lost 0.24%.

Coming into today, shares of the real estate investment trust had lost 4.18% in the past month. In that same time, the Finance sector gained 3.25%, while the S&P 500 gained 4.13%.

Wall Street will be looking for positivity from NRZ as it approaches its next earnings report date. The company is expected to report EPS of $0.54, down 6.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $240.28 million, down 10.97% from the year-ago period.

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.

Any recent changes to analyst estimates for NRZ should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. 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 7.24. This valuation marks a discount compared to its industry's average Forward P/E of 10.05.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 240, putting 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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