Why KKR Real Estate (KREF) May Surprise Earnings This Season


Investors are always looking for stocks that are ready to do well in reporting season and KKR Real Estate Finance Trust Inc. KREF may be one such company. The firm will have profits soon, and events are shaping up pretty well to report them.

This is due to the fact that recently KKR Real Estate has been active in revising favorable profit forecasts, which, as a rule, is a harbinger of a sharp increase in profit. After all, analysts raising estimates just ahead of the income statement – with the most recent information available – is a pretty good indicator of some of the favorable trends hidden beneath the surface for KREF in this report.

In fact, the most accurate estimate for the current quarter is currently 50 cents per share for KREF, compared to the broader Zacks consensus estimate of 49 cents per share. This suggests that analysts recently raised their estimates for KREF, bringing ESP Zacks Earnings ESP to + 3.09% ahead of earnings season.

KKR Real Estate Finance Trust Inc. Price and surprise per share

KKR Real Estate Finance Trust Inc.  Price and surprise per share

KKR Real Estate Finance Trust Inc. Price and surprise per share

KKR Real Estate Finance Trust Inc. price-eps-surprise | Quote from KKR Real Estate Finance Trust Inc.

Why is it important?

The positive Zacks Earnings ESP has been very powerful as it delivers both positive surprises and outperforms the market. Our recent 10-year backtest shows that stocks with positive ESP earnings and a 3rd Sax (Hold) or better outperform positive surprise almost 70% of the time, with annual returns in excess of 28% on average (see more ESP Top Earnings here).

Given that KREF has a Zacks # 3 rating and an ESP in positive territory, investors may want to consider this stock before making a profit. You can see See the full list of today’s Zacks # 1 Rank (Strong Buy) stocks here

It is clear that the recent revisions to the earnings estimate suggest that KKR Real Estate has good things ahead of it and that there may be something wrong with the forthcoming report.

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