Rithm (RITM) ended the recent trading session at $8.44, demonstrating a -2.54% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.41%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 1.11%.
Shares of the real estate investment trust witnessed a loss of 7.38% over the previous month, trailing the performance of the Finance sector with its loss of 1.68%, and the S&P 500's gain of 1.46%.
The investment community will be paying close attention to the earnings performance of Rithm in its upcoming release. The company is slated to reveal its earnings on October 23, 2026. The company is forecasted to report an EPS of $0.5, showcasing a 7.41% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.49 billion, indicating a 34.48% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.25 per share and a revenue of $5.85 billion, representing changes of -4.26% and +33.44%, respectively, from the prior year.
Any recent changes to analyst estimates for Rithm should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, there's been a 0.59% fall in the Zacks Consensus EPS estimate. As of now, Rithm holds a Zacks Rank of #4 (Sell).
In terms of valuation, Rithm is presently being traded at a Forward P/E ratio of 3.85. This valuation marks a discount compared to its industry average Forward P/E of 10.82.
Also, we should mention that RITM has a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Miscellaneous Services industry had an average PEG ratio of 0.86 as trading concluded yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 161, positioning it in the bottom 35% of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Rithm Capital Corp. (RITM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).