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3 Reasons Why Walker & Dunlop (WD) Stock is a Good Pick
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Shares of Walker & Dunlop, Inc. (WD - Free Report) have grown 37.2% in the last six months, outperforming the 34.3% gain for the Zacks categorized Mortgage & Related Services industry.
The company’s strong liquidity and a sturdy top line position it well for the future. Moreover, improving loan balances are expected to support revenue growth in the quarters ahead.
Looking at the estimate revision trend, the company’s earnings estimates for the current year have been revised 3.9% upward, over the past 60 days, indicating analyst’s optimism about its growth prospects. As a result, the stock sports a Zacks Rank #1 (Strong Buy).
Fundamentals Seem Impressive
Earnings Per Share (EPS) Growth: Walker & Dunlop has witnessed 24.1% growth in EPS (compared with 1.4% for the industry), over the last three to five years.
The growth momentum is likely to continue in the near term too. The company is expected to witness EPS growth of 19.8% for 2016 and 1.9% for 2017.
Revenue Strength: Walker & Dunlop’s total revenue has increased at a CAGR of 21.1%, over the last three years (2013–2015).
Moreover, the company’s projected sales growth (F1/F0) of 15.4% for 2016 and (F2/F1) 9.7% for 2017 look impressive.
Impressive Return on Equity (ROE): Walker & Dunlop’s ROE of 16.5% compares favorably with the industry average of 5.1%. This reflects that the company utilizes shareholder’s money much more efficiently as compared to its peers.
Other Stocks to Consider
Some other stocks in the same space worth considering are LendingTree, Inc. (TREE - Free Report) , Essent Group Ltd. (ESNT - Free Report) and PennyMac Financial Services, Inc. (PFSI - Free Report) .
LendingTree has witnessed an upward earnings estimate revision of 4.6% for the current year, over the past 60 days. Its share price has risen 12.3%, year to date. It currently boasts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Essent Group carries a Zacks Rank #2 (Buy). For the current year, it has witnessed an upward earnings estimate revision of 3.5%, over the past 60 days. Its share price has increased 47.2%, year to date.
PennyMac Financial also carries a Zacks Rank #2. It has witnessed an upward earnings estimate revision of 11.9% for the current year, over the past 60 days. Its share price has risen 10%, year to date.
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3 Reasons Why Walker & Dunlop (WD) Stock is a Good Pick
Shares of Walker & Dunlop, Inc. (WD - Free Report) have grown 37.2% in the last six months, outperforming the 34.3% gain for the Zacks categorized Mortgage & Related Services industry.
The company’s strong liquidity and a sturdy top line position it well for the future. Moreover, improving loan balances are expected to support revenue growth in the quarters ahead.
Looking at the estimate revision trend, the company’s earnings estimates for the current year have been revised 3.9% upward, over the past 60 days, indicating analyst’s optimism about its growth prospects. As a result, the stock sports a Zacks Rank #1 (Strong Buy).
Fundamentals Seem Impressive
Earnings Per Share (EPS) Growth: Walker & Dunlop has witnessed 24.1% growth in EPS (compared with 1.4% for the industry), over the last three to five years.
The growth momentum is likely to continue in the near term too. The company is expected to witness EPS growth of 19.8% for 2016 and 1.9% for 2017.
Revenue Strength: Walker & Dunlop’s total revenue has increased at a CAGR of 21.1%, over the last three years (2013–2015).
Moreover, the company’s projected sales growth (F1/F0) of 15.4% for 2016 and (F2/F1) 9.7% for 2017 look impressive.
Impressive Return on Equity (ROE): Walker & Dunlop’s ROE of 16.5% compares favorably with the industry average of 5.1%. This reflects that the company utilizes shareholder’s money much more efficiently as compared to its peers.
Other Stocks to Consider
Some other stocks in the same space worth considering are LendingTree, Inc. (TREE - Free Report) , Essent Group Ltd. (ESNT - Free Report) and PennyMac Financial Services, Inc. (PFSI - Free Report) .
LendingTree has witnessed an upward earnings estimate revision of 4.6% for the current year, over the past 60 days. Its share price has risen 12.3%, year to date. It currently boasts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Essent Group carries a Zacks Rank #2 (Buy). For the current year, it has witnessed an upward earnings estimate revision of 3.5%, over the past 60 days. Its share price has increased 47.2%, year to date.
PennyMac Financial also carries a Zacks Rank #2. It has witnessed an upward earnings estimate revision of 11.9% for the current year, over the past 60 days. Its share price has risen 10%, year to date.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>.