Rithm (RITM) ended the recent trading session at $10.90, demonstrating a -1.54% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.76%.
Prior to today's trading, shares of the real estate investment trust had lost 2.29% lagged the Finance sector's gain of 2.1% and the S&P 500's gain of 0.79%.
The investment community will be paying close attention to the earnings performance of Rithm in its upcoming release. The company is expected to report EPS of $0.54, down 10% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.37 billion, down 34.89% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.14 per share and revenue of $4.46 billion. These totals would mark changes of +1.9% and -14.84%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Rithm. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 1.61% lower. Rithm currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Rithm currently has a Forward P/E ratio of 5.18. This expresses a discount compared to the average Forward P/E of 12.09 of its industry.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.
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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