In the latest close session, Rithm (RITM) was up +1.62% at $11.90. This move outpaced the S&P 500's daily gain of 0.32%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.26%.
The real estate investment trust's stock has climbed by 5.4% in the past month, exceeding the Finance sector's gain of 3.04% and the S&P 500's gain of 4.51%.
The investment community will be closely monitoring the performance of Rithm in its forthcoming earnings report. The company is expected to report EPS of $0.51, up 8.51% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.25 billion, up 1.63% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.1 per share and a revenue of $4.56 billion, indicating changes of 0% and -12.91%, respectively, from the former year.
Any recent changes to analyst estimates for Rithm should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Rithm is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Rithm is currently exchanging hands at a Forward P/E ratio of 5.59. This indicates a discount in contrast to its industry's Forward P/E of 11.67.
The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Rithm Capital Corp. (RITM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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