Back to top

Image: Bigstock

Armour Residential REIT (ARR) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Armour Residential REIT (ARR - Free Report) closed the most recent trading day at $5.85, moving +1.39% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.45%. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 5.88%.

Prior to today's trading, shares of the real estate investment trust had gained 0.17% over the past month. This has outpaced the Finance sector's loss of 1.91% and the S&P 500's loss of 1.68% in that time.

Wall Street will be looking for positivity from Armour Residential REIT as it approaches its next earnings report date. On that day, Armour Residential REIT is projected to report earnings of $0.31 per share, which would represent year-over-year growth of 14.81%. Meanwhile, our latest consensus estimate is calling for revenue of $42.54 million, up 107.21% from the prior-year quarter.

ARR's full-year Zacks Consensus Estimates are calling for earnings of $1.20 per share and revenue of $133.67 million. These results would represent year-over-year changes of +25% and +81.41%, respectively.

Investors might also notice recent changes to analyst estimates for Armour Residential REIT. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Armour Residential REIT is currently a Zacks Rank #2 (Buy).

Investors should also note Armour Residential REIT's current valuation metrics, including its Forward P/E ratio of 4.83. For comparison, its industry has an average Forward P/E of 7.29, which means Armour Residential REIT is trading at a discount to the group.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ARMOUR Residential REIT, Inc. (ARR) - free report >>

Published in