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Why Rithm (RITM) Dipped More Than Broader Market Today

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In the latest trading session, Rithm (RITM - Free Report) closed at $10.67, marking a -0.28% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.09%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.1%.

Prior to today's trading, shares of the real estate investment trust had gained 0.56% over the past month. This has outpaced the Finance sector's loss of 4.24% and the S&P 500's loss of 0.29% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Rithm in its upcoming earnings disclosure. The company is expected to report EPS of $0.45, down 11.76% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.2 billion, reflecting a 69.08% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.95 per share and revenue of $4.32 billion. These totals would mark changes of -5.34% and +19.21%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Rithm. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 witnessed a 3.05% increase. Right now, Rithm possesses a Zacks Rank of #2 (Buy).

Looking at valuation, Rithm is presently trading at a Forward P/E ratio of 5.5. This valuation marks a discount compared to its industry's average Forward P/E of 12.48.

The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 63, placing it within the top 26% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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