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Rithm (RITM) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest close session, Rithm (RITM - Free Report) was down 1.49% at $11.22. The stock trailed the S&P 500, which registered a daily gain of 0.34%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.42%.

Shares of the real estate investment trust have depreciated by 7.17% over the course of the past month, underperforming the Finance sector's gain of 1.52%, and the S&P 500's gain of 3.54%.

The upcoming earnings release of Rithm will be of great interest to investors. It is anticipated that the company will report an EPS of $0.52, marking a 3.7% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.22 billion, indicating a 96.45% upward movement from the same quarter last year.

RITM's full-year Zacks Consensus Estimates are calling for earnings of $2.12 per share and revenue of $4.52 billion. These results would represent year-over-year changes of +0.95% and -13.64%, respectively.

Investors might also notice recent changes to analyst estimates 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 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Rithm is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Rithm is presently being traded at a Forward P/E ratio of 5.38. For comparison, its industry has an average Forward P/E of 12.71, which means Rithm is trading at a discount to the group.

The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 30% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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