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Armour Residential REIT (ARR) Outpaces Stock Market Gains: What You Should Know

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Armour Residential REIT (ARR - Free Report) closed at $5.69 in the latest trading session, marking a +1.79% move from the prior day. This change outpaced the S&P 500's 1.75% gain on the day. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 7.84%.

Heading into today, shares of the real estate investment trust had lost 4.93% over the past month, lagging the Finance sector's loss of 3.23% and the S&P 500's loss of 4.4% 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%. Our most recent consensus estimate is calling for quarterly revenue of $42.54 million, up 107.21% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.20 per share and revenue of $133.67 million, which would represent changes of +25% and +81.41%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Armour Residential REIT. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Armour Residential REIT is currently a Zacks Rank #3 (Hold).

In terms of valuation, Armour Residential REIT is currently trading at a Forward P/E ratio of 4.68. This represents a discount compared to its industry's average Forward P/E of 6.96.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 42% 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.

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


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