Arbor Realty Trust (ABR) Laps the Stock Market: Here's Why

In the latest close session, Arbor Realty Trust (ABR) was up +2.78% at $10.74. This change outpaced the S&P 500's 0.8% gain on the day. At the same time, the Dow added 0.94%, and the tech-heavy Nasdaq gained 0.97%.

Prior to today's trading, shares of the real estate investment trust had gained 6.74% outpaced the Finance sector's gain of 2.69% and the S&P 500's gain of 5.12%.

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Investors will be eagerly watching for the performance of Arbor Realty Trust in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.29, indicating a 35.56% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $237.24 million, down 20.17% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.18 per share and a revenue of $959.31 million, indicating changes of -32.18% and -17.86%, respectively, from the former year.

Any recent changes to analyst estimates for Arbor Realty Trust should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Arbor Realty Trust is carrying a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Arbor Realty Trust currently has a Forward P/E ratio of 8.89. This represents a premium compared to its industry average Forward P/E of 8.19.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 22% of all 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.

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).

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