Rithm (RITM) closed the latest trading day at $11.63, indicating a -0.26% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.53%.
Heading into today, shares of the real estate investment trust had lost 3% over the past month, lagging the Finance sector's loss of 0.51% and outpacing the S&P 500's loss of 4.03% in that time.
Investors will be eagerly watching for the performance of Rithm in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.47, indicating a 2.08% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.2 billion, showing a 7.04% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.95 per share and a revenue of $4.93 billion, representing changes of -7.14% and -5.87%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Rithm. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.03% increase. Right now, Rithm possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Rithm is currently trading at a Forward P/E ratio of 5.97. This expresses a discount compared to the average Forward P/E of 9.55 of its industry.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 27, finds itself in the top 11% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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