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New Residential Investment (NRZ) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3-min read

New Residential Investment (NRZ) closed the most recent trading day at $9.68, moving -1.43% from the previous trading session. This change lagged the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.02%.

Prior to today's trading, shares of the real estate investment trust had lost 13.1% over the past month. This has lagged the Finance sector's loss of 8.94% and the S&P 500's loss of 7.99% in that time.

New Residential Investment will be looking to display strength as it nears its next earnings release. In that report, analysts expect New Residential Investment to post earnings of $0.29 per share. This would mark a year-over-year decline of 6.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $252.3 million, up 71.47% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.21 per share and revenue of $1.04 billion, which would represent changes of -18.24% and +50.29%, respectively, from the prior year.

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It is also important to note the recent changes to analyst estimates for New Residential Investment. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 12.11% lower. New Residential Investment is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, New Residential Investment is currently trading at a Forward P/E ratio of 8.12. This represents a discount compared to its industry's average Forward P/E of 8.39.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% 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.

To follow NRZ in the coming trading sessions, be sure to utilize Zacks.com.


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