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Here's Why Arbor Realty Trust (ABR) Fell More Than Broader Market

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Arbor Realty Trust (ABR - Free Report) closed at $13.04 in the latest trading session, marking a -1.66% move from the prior day. This move lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.3%.

The real estate investment trust's shares have seen a decrease of 2.36% over the last month, not keeping up with the Finance sector's gain of 6.28% and the S&P 500's gain of 3.64%.

The investment community will be paying close attention to the earnings performance of Arbor Realty Trust in its upcoming release. The company's upcoming EPS is projected at $0.42, signifying a 23.64% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $279.61 million, indicating a 16.9% decline compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.77 per share and revenue of $1.17 billion, indicating changes of -21.33% and -12.36%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Arbor Realty Trust. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.89% higher. Arbor Realty Trust is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Arbor Realty Trust currently has a Forward P/E ratio of 7.51. This expresses a discount compared to the average Forward P/E of 8.67 of its industry.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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