Published on 30 Apr 2022 on Simply Wall St. via Yahoo Finance

The Market Doesn't Like What It Sees From Realogy Holdings Corp.'s (NYSE:RLGY) Earnings Yet As...

The Realogy Holdings Corp. (NYSE:RLGY) share price has fared very poorly over the last month, falling by a substantial 31%. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 37% in that time.

Since its price has dipped substantially, Realogy Holdings may be sending very bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 3.9x, since almost half of all companies in the United States have P/E ratios greater than 17x and even P/E's higher than 34x are not unusual. However, the P/E might be quite low for a reason and it requires further investigation to determine if it's justified.

Realogy Holdings certainly has been doing a good job lately as it's been growing earnings more than most other companies. One possibility is that the P/E is low because investors think this strong earnings performance might be less impressive moving forward. If not, then existing shareholders have reason to be quite optimistic about the future direction of the share price.