In the latest trading session, Rithm (RITM) closed at $9.55, marking a +2.14% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.49% for the day. On the other hand, the Dow registered a gain of 0.71%, and the technology-centric Nasdaq increased by 2.26%.
Coming into today, shares of the real estate investment trust had lost 8.24% in the past month. In that same time, the Finance sector lost 2.25%, while the S&P 500 gained 0.1%.
The investment community will be closely monitoring the performance of Rithm in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.51, reflecting a 5.56% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.47 billion, up 33.3% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.26 per share and revenue of $5.84 billion, indicating changes of -3.83% and +33.21%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Rithm. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Rithm currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Rithm is currently being traded at a Forward P/E ratio of 4.14. This represents a discount compared to its industry average Forward P/E of 11.61.
It's also important to note that RITM currently trades at a PEG ratio of 0.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 0.97.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Rithm Capital Corp. (RITM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).