Rithm (RITM) closed the most recent trading day at $10.77, moving +1.13% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.56%. Elsewhere, the Dow saw an upswing of 1.29%, while the tech-heavy Nasdaq appreciated by 2.21%.
The stock of real estate investment trust has fallen by 13.97% in the past month, lagging the Finance sector's loss of 2.31% and the S&P 500's gain of 0.41%.
The upcoming earnings release of Rithm will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.54, reflecting no change from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1 billion, reflecting a 61.46% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.15 per share and a revenue of $4.3 billion, signifying shifts of +2.38% and -17.89%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Rithm. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.34% upward. Rithm is currently a Zacks Rank #2 (Buy).
In terms of valuation, Rithm is currently trading at a Forward P/E ratio of 4.97. Its industry sports an average Forward P/E of 11.98, so one might conclude that Rithm is trading at a discount comparatively.
The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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