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Rithm (RITM) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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The latest trading session saw Rithm (RITM - Free Report) ending at $11.91, denoting a +0.85% adjustment from its last day's close. This change lagged the S&P 500's 1.7% gain on the day. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 2.51%.

The real estate investment trust's shares have seen an increase of 3.96% over the last month, surpassing the Finance sector's gain of 2.47% and the S&P 500's gain of 1.27%.

The upcoming earnings release of Rithm will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.43, reflecting a 25.86% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.15 billion, up 5.9% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.82 per share and revenue of $4.82 billion, which would represent changes of -11.65% and +33.25%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Rithm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Rithm possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Rithm is currently being traded at a Forward P/E ratio of 6.5. This expresses a discount compared to the average Forward P/E of 11.58 of its industry.

The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 65, placing it within the top 26% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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