Trade-Ideas LLC identified

New Residential Investment

(

NRZ

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified New Residential Investment as such a stock due to the following factors:

  • NRZ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $57.4 million.
  • NRZ is up 4.2% today from today's close.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in NRZ with the Ticky from Trade-Ideas. See the FREE profile for NRZ NOW at Trade-Ideas

More details on NRZ:

New Residential Investment Corp., a real estate investment trust (REIT), focuses on investing in and managing residential mortgage related assets. It operates through Servicing Related Assets, Residential Securities and Loans, and Other Investments segments. The stock currently has a dividend yield of 17.4%. NRZ has a PE ratio of 9. Currently there are 8 analysts that rate New Residential Investment a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for New Residential Investment has been 3.7 million shares per day over the past 30 days. New Residential Investment has a market cap of $2.4 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.28 and a short float of 5.6% with 1.41 days to cover. Shares are down 16.4% year-to-date as of the close of trading on Monday.

TST Recommends

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates New Residential Investment as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 56.9% when compared to the same quarter one year ago, falling from $126.37 million to $54.53 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, NEW RESIDENTIAL INV CP's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$155.16 million or 474.98% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of NEW RESIDENTIAL INV CP has not done very well: it is down 22.31% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • NEW RESIDENTIAL INV CP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NEW RESIDENTIAL INV CP increased its bottom line by earning $2.52 versus $1.96 in the prior year. For the next year, the market is expecting a contraction of 26.2% in earnings ($1.86 versus $2.52).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.