Rithm (RITM) closed at $12.38 in the latest trading session, marking a -1.28% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq added 0.45%.
The stock of real estate investment trust has risen by 1.37% in the past month, lagging the Finance sector's gain of 4.15% and the S&P 500's gain of 3.44%.
Market participants will be closely following the financial results of Rithm in its upcoming release. The company's upcoming EPS is projected at $0.52, signifying a 3.70% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.22 billion, up 96.45% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2.12 per share and a revenue of $4.52 billion, demonstrating changes of +0.95% and -13.64%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Rithm. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Rithm is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Rithm's current valuation metrics, including its Forward P/E ratio of 5.92. This valuation marks a discount compared to its industry average Forward P/E of 13.33.
The Financial – Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 26% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
