In the latest close session, Rithm (RITM) was down 1.34% at $11.04. This change lagged the S&P 500's daily loss of 0.24%. Meanwhile, the Dow experienced a drop of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.23%.
The real estate investment trust's stock has climbed by 3.04% in the past month, falling short of the Finance sector's gain of 3.36% and outpacing the S&P 500's gain of 1.31%.
The investment community will be closely monitoring the performance of Rithm in its forthcoming earnings report. The company is expected to report EPS of $0.57, down 5% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.41 billion, indicating a 32.98% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.17 per share and revenue of $4.46 billion. These totals would mark changes of +3.33% and -14.84%, respectively, from last 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Rithm presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Rithm has a Forward P/E ratio of 5.16 right now. For comparison, its industry has an average Forward P/E of 12.24, which means Rithm is trading at a discount to the group.
The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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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