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Why the Market Dipped But Arbor Realty Trust (ABR) Gained Today

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In the latest trading session, Arbor Realty Trust (ABR - Free Report) closed at $13.61, marking a +1.64% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 1.46% for the day. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq lost 3.07%.

The real estate investment trust's shares have seen a decrease of 1.98% over the last month, not keeping up with the Finance sector's gain of 3.29% and the S&P 500's gain of 1.08%.

The investment community will be paying close attention to the earnings performance of Arbor Realty Trust in its upcoming release. In that report, analysts expect Arbor Realty Trust to post earnings of $0.41 per share. This would mark a year-over-year decline of 19.61%. Our most recent consensus estimate is calling for quarterly revenue of $260.98 million, down 21.17% from the year-ago period.

It's also important for investors to be aware of any recent modifications to analyst estimates for Arbor Realty Trust. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.16% decrease. Currently, Arbor Realty Trust is carrying a Zacks Rank of #4 (Sell).

In the context of valuation, Arbor Realty Trust is at present trading with a Forward P/E ratio of 8.21. This signifies a premium in comparison to the average Forward P/E of 8.15 for its industry.

The REIT and Equity Trust industry is part of the Finance sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 40% of all industries, numbering over 250.

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.

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


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