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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 $4.88 in the latest trading session, marking a +1.46% move from the prior day. This change outpaced the S&P 500's 1.3% gain on the day. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 7.48%.

Coming into today, shares of the real estate investment trust had lost 18.06% in the past month. In that same time, the Finance sector lost 10.17%, while the S&P 500 lost 2.95%.

Investors will be hoping for strength from Armour Residential REIT as it approaches its next earnings release. In that report, analysts expect Armour Residential REIT to post earnings of $0.25 per share. This would mark a year-over-year decline of 10.71%. Our most recent consensus estimate is calling for quarterly revenue of $58.72 million, up 89.78% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.09 per share and revenue of $253.99 million. These totals would mark changes of -6.03% and +135.96%, respectively, from last year.

It is also important to note the 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Armour Residential REIT is holding a Forward P/E ratio of 4.41. Its industry sports an average Forward P/E of 6.52, so we one might conclude that Armour Residential REIT is trading at a discount comparatively.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% 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 ARR in the coming trading sessions, be sure to utilize Zacks.com.


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