This story originally appeared on Zacks

New Residential Investment (NRZ) closed the most recent trading day at $11.14, moving -0.18% from the previous trading session. This change lagged the S&P 500’s 0.08% gain on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.

Heading into today, shares of the real estate investment trust had gained 4.11% over the past month, lagging the Finance sector’s gain of 5.21% and outpacing the S&P 500’s gain of 0.64% in that time.

Investors will be hoping for strength from New Residential Investment as it approaches its next earnings release. On that day, New Residential Investment is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 18.75%. Meanwhile, our latest consensus estimate is calling for revenue of $211.4 million, up 86.35% from the prior-year quarter.

Any recent changes to analyst estimates for New Residential Investment should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.38% lower. New Residential Investment currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, New Residential Investment is holding a Forward P/E ratio of 6.58. This represents a discount compared to its industry’s average Forward P/E of 8.88.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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

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