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Newtek (NEWT) Gains But Lags Market: What You Should Know
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Newtek (NEWT - Free Report) closed at $16.47 in the latest trading session, marking a +0.92% move from the prior day. The stock lagged the S&P 500's daily gain of 2.59%. Elsewhere, the Dow gained 2.66%, while the tech-heavy Nasdaq added 0.12%.
Prior to today's trading, shares of the provider of financial and business services to small-and medium-sized business had lost 22.29% over the past month. This has lagged the Finance sector's loss of 9.14% and the S&P 500's loss of 9.22% in that time.
Investors will be hoping for strength from Newtek as it approaches its next earnings release. Our most recent consensus estimate is calling for quarterly revenue of $21.87 million, up 76.23% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.87 per share and revenue of $85.31 million. These totals would mark changes of -17.29% and -21.37%, respectively, from last year.
Any recent changes to analyst estimates for Newtek should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Newtek is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Newtek's current valuation metrics, including its Forward P/E ratio of 5.69. For comparison, its industry has an average Forward P/E of 8.25, which means Newtek is trading at a discount to the group.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 15, putting it in the top 6% 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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Newtek (NEWT) Gains But Lags Market: What You Should Know
Newtek (NEWT - Free Report) closed at $16.47 in the latest trading session, marking a +0.92% move from the prior day. The stock lagged the S&P 500's daily gain of 2.59%. Elsewhere, the Dow gained 2.66%, while the tech-heavy Nasdaq added 0.12%.
Prior to today's trading, shares of the provider of financial and business services to small-and medium-sized business had lost 22.29% over the past month. This has lagged the Finance sector's loss of 9.14% and the S&P 500's loss of 9.22% in that time.
Investors will be hoping for strength from Newtek as it approaches its next earnings release. Our most recent consensus estimate is calling for quarterly revenue of $21.87 million, up 76.23% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.87 per share and revenue of $85.31 million. These totals would mark changes of -17.29% and -21.37%, respectively, from last year.
Any recent changes to analyst estimates for Newtek should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Newtek is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Newtek's current valuation metrics, including its Forward P/E ratio of 5.69. For comparison, its industry has an average Forward P/E of 8.25, which means Newtek is trading at a discount to the group.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 15, putting it in the top 6% 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.