Starwood Property Trust (STWD) closed at $20.27 in the latest trading session, marking a -0.83% move from the prior day. This move was narrower than the S&P 500’s daily loss of 1.38%. Meanwhile, the Dow lost 1.26%, and the Nasdaq, a tech-heavy index, lost 5.67%.
Coming into today, shares of the commercial real estate investment trust had gained 2% in the past month. In that same time, the Finance sector gained 1.97%, while the S&P 500 gained 3.87%.
Starwood Property Trust will be looking to display strength as it nears its next earnings release, which is expected to be March 1, 2023. The company is expected to report EPS of $0.50, down 54.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $463.2 million, up 59.88% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Starwood Property Trust. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.25% lower. Starwood Property Trust is currently a Zacks Rank #4 (Sell).
In terms of valuation, Starwood Property Trust is currently trading at a Forward P/E ratio of 9.73. This valuation marks a premium compared to its industry’s average Forward P/E of 8.06.
The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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