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Starwood Property Trust (STWD) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Starwood Property Trust (STWD - Free Report) closed at $19.77, marking a -1.74% move from the previous day. This change lagged the S&P 500's daily loss of 1.06%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.08%.

Prior to today's trading, shares of the commercial real estate investment trust had gained 3.13% over the past month. This has lagged the Finance sector's gain of 7.07% and the S&P 500's gain of 4.94% in that time.

Starwood Property Trust will be looking to display strength as it nears its next earnings release, which is expected to be November 9, 2022. In that report, analysts expect Starwood Property Trust to post earnings of $0.51 per share. This would mark a year-over-year decline of 1.92%. Meanwhile, our latest consensus estimate is calling for revenue of $408.53 million, up 35.15% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.30 per share and revenue of $1.54 billion, which would represent changes of -12.55% and +31.54%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Starwood Property Trust. These recent revisions tend to reflect the evolving nature of short-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. The Zacks Consensus EPS estimate has moved 3.13% lower within the past month. Starwood Property Trust is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Starwood Property Trust is holding a Forward P/E ratio of 8.76. Its industry sports an average Forward P/E of 8.23, so we one might conclude that Starwood Property Trust is trading at a premium comparatively.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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