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Ready Capital (RC) Dips More Than Broader Markets: What You Should Know

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Ready Capital (RC - Free Report) closed at $14.57 in the latest trading session, marking a -1.75% move from the prior day. This move lagged the S&P 500's daily loss of 1.1%. Elsewhere, the Dow lost 0.89%, while the tech-heavy Nasdaq added 0.03%.

Coming into today, shares of the real estate investment trust had lost 6.08% in the past month. In that same time, the Finance sector gained 2.59%, while the S&P 500 lost 1.81%.

Investors will be hoping for strength from Ready Capital as it approaches its next earnings release. The company is expected to report EPS of $0.50, down 1.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $60.38 million, up 157.06% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Ready Capital. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. Ready Capital is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Ready Capital currently has a Forward P/E ratio of 7.96. For comparison, its industry has an average Forward P/E of 8.78, which means Ready Capital is trading at a discount to the group.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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