Opinions
The Panic-Proof Portfolio (Stockchase Research)
New Residential Investment Corp.
NRZ-N
TOP PICK
Feb 01, 2022
Stockchase Research Editor: Michael O'Reilly Following its recent acquisition, this $4.9b REIT is again reiterated as a TOP PICK. This will place the company in an even more diversified portfolio that will be well positioned to weather various interest rate trends. It trades at a 8x earnings, compared to peers at 11x and is valued just under book value. Last earnings beat analyst expectations by 25% and the company is managing a ROE over 13%. It pays a sizable dividend, backed by a payout ratio under 75% of cash flow. We continue to recommend a tight stop at $10.00, looking to achieve $12.75 -- upside potential of 18%. Yield 9.65% (Analysts’ price target is $12.72)
$10.675
Stock price when the opinion was issued
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TOP PICK
NRZ has recently gone through a major transformation as a result of the pandemic and it has reduced the risk of the company dramatically by moving into only government secured mortgages. They completely exited all non-qualified mortgages. The company currently trades at 47% of book value. It has a good yield with only an 18% payout ratio. We see upside of over 60% and would trade this with a stop-loss of $6.50. Yield 5.06% (Analysts’ price target is $12.40)
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PAST TOP PICK
PAST TOP PICK
(A Top Pick Feb 01/22, Down 6.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with NRZ has triggered its stop at $10. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 26%, when combined with the previous buy recommendation.
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