In the latest trading session, Rithm (RITM) closed at $12.29, marking a -1.36% move from the previous day. This move lagged the S&P 500's daily gain of 0.48%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.94%.
Shares of the real estate investment trust have appreciated by 0.97% over the course of the past month, underperforming the Finance sector's gain of 2.95%, and the S&P 500's gain of 2.46%.
Investors will be eagerly watching for the performance of Rithm in its upcoming earnings disclosure. On that day, Rithm is projected to report earnings of $0.52 per share, which would represent a year-over-year decline of 3.7%. 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 are projecting earnings of $2.12 per share and revenue of $4.52 billion, which would represent changes of +0.95% and -13.64%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Rithm. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Rithm currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Rithm currently has a Forward P/E ratio of 5.89. This expresses a discount compared to the average Forward P/E of 13.21 of its industry.
The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 22% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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Rithm Capital Corp. (RITM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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