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In the latest trading session, Rithm (RITM) closed at $11.53, marking a +0.09% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.76%. On the other hand, the Dow registered a loss of 1.14%, and the technology-centric Nasdaq decreased by 0.18%.
Coming into today, shares of the real estate investment trust had lost 2.87% in the past month. In that same time, the Finance sector lost 5.26%, while the S&P 500 lost 7.29%.
Market participants will be closely following the financial results of Rithm in its upcoming release. The company's upcoming EPS is projected at $0.47, signifying a 2.08% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.19 billion, down 7.35% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.94 per share and revenue of $4.89 billion, indicating changes of -7.62% and -6.53%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Rithm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.52% increase. Currently, Rithm is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Rithm is currently exchanging hands at a Forward P/E ratio of 5.93. This valuation marks a discount compared to its industry's average Forward P/E of 9.21.
The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 35, this industry ranks in the top 14% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.