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New Residential Investment Corp. (NRZ)

NRZ stock forecast: buy or sell

Close on Sep 25th, 2020
$7.91 0.04%
3 months performance
0.13%
Published: September 27th, 2020 - 23:03

NRZ stock outlook

  • New Residential Investment closed on Friday at $7.91 after skyrocketing a 4.22% and broke a streak of 4 sessions in red.
  • UBS Group published a strong bullish rating for New Residential Investment on Thursday, targeting $11.00
  • New Residential Investment Corp., a real estate investment trust, focuses on investing in and managing residential mortgage related assets in the United States.

Important note:
The thoughts contained in this article are personal and not recommendations for you to buy or sell shares. The author of this paper does not have any knowledge of the individual situations of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are posted for learning purposes only

NRZ stock charts

Should I buy New Residential Investment stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is NRZ stock a buy?

Currently, New Residential Investment stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for NRZ in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell New Residential Investment stock?

"To sell or not to sell", if you are holding New Residential InvestmentĀ stock?. Trading strategies allow us to avoid impetuous decisions based on our personal moods or the buzz surrounding the market. We like very simple strategies to guide us on when is a good time to sell a stock. Be aware that these strategies should not be used for selling short NRZ stock

A guiding principle is that you should never hold a trade that generates higher than expected losses at the time of purchase. The moment to sell shares should always be determined by the stop-loss (automatic or manual)

Is it time to sell New Residential Investment stock?

In the current situation of New Residential Investment there is not any eligible sell setup, so New Residential Investment stock holders with operations in green can keep their positions

Analysts' recommendations to buy or sell New Residential Investment stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 3 analyst ratings were published for New Residential Investment. General sentiment is bullish, with 3 out of 3 posting optimistic outlooks

New Residential Investment ratings

Brokerage firmRating
Sep 8th, 2020
Credit Suisse Group Strong buy
Sep 17th, 2020
Credit Suisse Group Strong buy
Sep 24th, 2020
UBS Group Strong buy

Technical analysis

SMAs overview

A favorite tool of many traders are the moving averages, that easily show market momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. You can found more about Moving Averages from sources like Wikipedia and Investopedia

NRZ SMAs chart

Supports and resistances

Traders use support and resistance levels as a way to find price points on a chart that may work as obstacles, preventing the price of a stock to move in certain direction. Supports are levels where the price tends to find support as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down the support, it is likely to continue falling until approaching another support level. On the other hand, a resistance level is where the price tends to find opposition as it moves up. In the same manner, the price is more likely to "bounce off" at this level, and if it finally ruptures this level, the price will rally more easily until it finds the next resistance

The current resistance levels are:

  • R1: $8.22 (3.92% above)
  • R2: $8.73 (10.37% above)
  • R3: $9.29 (17.45% above)
  • The current supports are:

  • S1: $7.11 (-10.11% below)
  • S2: $7.01 (-11.38% below)
  • S3: $6.38 (-19.34% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-established technique introduced by John Bollinger. It consists of three lines that are plotted superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    NRZ RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to plot the current and previous weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in the late 1970s

    The RSI has been between the overbought and oversold zones for some weeks, and therefore, without this indicator really being of any help to us in making any decisions.

    NRZ RSI chart

    Earnings and financials

    NRZ hosted the quarterly shareholders event and released the Q2 report in mid-July. NRZ posted Q2 earnings of $0.34 per share on revenue of $383.9 million. The market estimate was $0.31 per share on revenue of $410.4 million.

    Same quarter last year, reported EPS was $0.53, so recently reported EPS means a drop of -35.85%. Looking at revenues, figures exploded a 350.23% compared to $85.3M same quarter 12 months ago.

    NRZ presents Q3 earnings report on late next October. Estimated earnings of %s a share for this quarter is $0.33. If you own or you are thinking of buying NRZ stock, be careful as earnings reporting day usually has a higher than usual volatility, and price can gap up or down with exceptionally low liquidity and not honouring your buy or stop-loss orders. You can obtain more information about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.newresi.com.

    NRZ revenues and profits chart