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

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Rithm (RITM - Free Report) closed at $9.58 in the latest trading session, marking a +0.84% move from the prior day. This move lagged the S&P 500's daily gain of 1.47%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 7.94%.

Coming into today, shares of the real estate investment trust had gained 12.56% in the past month. In that same time, the Finance sector gained 8.23%, while the S&P 500 gained 7.41%.

Rithm will be looking to display strength as it nears its next earnings release, which is expected to be February 8, 2023. The company is expected to report EPS of $0.29, down 27.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $690.66 million, up 217.46% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Rithm. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 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 remained stagnant. Rithm currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Rithm is currently trading at a Forward P/E ratio of 7.24. For comparison, its industry has an average Forward P/E of 9.68, which means Rithm is trading at a discount to the group.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% 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.

To follow RITM in the coming trading sessions, be sure to utilize Zacks.com.


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