Rithm (RITM) ended the recent trading session at $9.09, demonstrating a -2.88% change from the preceding day's closing price. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, lost 0.8%.
Prior to today's trading, shares of the real estate investment trust had gained 3.77% lagged the Finance sector's gain of 4.09% and outpaced the S&P 500's loss of 1.43%.
The investment community will be paying close attention to the earnings performance of Rithm in its upcoming release. The company is forecasted to report an EPS of $0.52, showcasing a 3.7% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.47 billion, indicating a 20.68% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.27 per share and a revenue of $6.04 billion, demonstrating changes of -3.4% and +37.85%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Rithm. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.07% lower. Rithm currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Rithm is currently trading at a Forward P/E ratio of 4.13. This represents a discount compared to its industry average Forward P/E of 11.17.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 108, finds itself in the top 44% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Rithm Capital Corp. (RITM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).