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Rithm (RITM) Gains But Lags Market: What You Should Know

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In the latest trading session, Rithm (RITM - Free Report) closed at $7.53, marking a +1.76% move from the previous day. This change lagged the S&P 500's 2.6% gain on the day.

Prior to today's trading, shares of the real estate investment trust had lost 18.32% over the past month. This has lagged the Finance sector's loss of 12.55% and the S&P 500's loss of 12.9% in that time.

Rithm will be looking to display strength as it nears its next earnings release. In that report, analysts expect Rithm to post earnings of $0.26 per share. This would mark a year-over-year decline of 40.91%. Meanwhile, our latest consensus estimate is calling for revenue of $866.03 million, up 354.3% from the prior-year quarter.

RITM's full-year Zacks Consensus Estimates are calling for earnings of $1.24 per share and revenue of $4.7 billion. These results would represent year-over-year changes of -16.22% and +580.75%, respectively.

Investors might also notice recent changes to analyst estimates for Rithm. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.54% lower. Rithm currently has a Zacks Rank of #4 (Sell).

Digging into valuation, Rithm currently has a Forward P/E ratio of 5.98. For comparison, its industry has an average Forward P/E of 9.79, which means Rithm is trading at a discount to the group.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 140, putting it in the bottom 45% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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