Here's Why Arbor Realty Trust (ABR) Gained But Lagged the Market Today

Zacks
03-20

Arbor Realty Trust (ABR) closed at $12.31 in the latest trading session, marking a +0.24% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.08%. Elsewhere, the Dow saw an upswing of 0.92%, while the tech-heavy Nasdaq appreciated by 1.41%.

Coming into today, shares of the real estate investment trust had lost 11.01% in the past month. In that same time, the Finance sector lost 4.3%, while the S&P 500 lost 8.26%.

Market participants will be closely following the financial results of Arbor Realty Trust in its upcoming release. On that day, Arbor Realty Trust is projected to report earnings of $0.34 per share, which would represent a year-over-year decline of 27.66%. Simultaneously, our latest consensus estimate expects the revenue to be $243.16 million, showing a 24.32% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.37 per share and revenue of $950.65 million, indicating changes of -21.26% and -18.6%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Arbor Realty Trust. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 21.17% lower. Arbor Realty Trust is holding a Zacks Rank of #5 (Strong Sell) right now.

With respect to valuation, Arbor Realty Trust is currently being traded at a Forward P/E ratio of 8.96. This expresses a premium compared to the average Forward P/E of 8.73 of its industry.

The REIT and Equity Trust industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 207, positioning it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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