Back to top

Image: Bigstock

Ready Capital (RC) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Ready Capital (RC - Free Report) closed the most recent trading day at $15.80, moving -0.44% from the previous trading session. This move lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.36%.

Heading into today, shares of the real estate investment trust had gained 9.98% over the past month, outpacing the Finance sector's gain of 7.96% and the S&P 500's gain of 8.17% in that time.

Investors will be hoping for strength from RC as it approaches its next earnings release. On that day, RC is projected to report earnings of $0.43 per share, which would represent year-over-year growth of 16.22%. Our most recent consensus estimate is calling for quarterly revenue of $16.78 million, up 11.31% from the year-ago period.

Investors might also notice recent changes to analyst estimates for RC. These recent revisions tend to reflect the evolving nature of short-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. 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 has moved 1.12% higher. RC currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note RC's current valuation metrics, including its Forward P/E ratio of 8.78. Its industry sports an average Forward P/E of 9.52, so we one might conclude that RC is trading at a discount comparatively.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Ready Capital Corp (RC) - free report >>

Published in