PennyMac Mortgage Investment Trust (PMT - Free Report) has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because PMT is now in overbought territory with an RSI value of 84.24.
What is RSI?
RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.
Other Factors
Yet PMT’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions in PennyMac Mortgage’s stock as of late. This is especially true when investors dive into some of these revisions in order to get a better picture of PMT’s prospects for the near term.
Over the past two months, investors have witnessed 1 earnings estimate revisions lower compared to none higher for the current year. The consensus estimate for PMT has also been on a downward trend over the same time period too, as the estimate has fallen from $1.63/share two months ago to just $1.41/share today.
If this wasn’t enough, PennyMac Mortgage also has a Zacks Rank #5 (Strong Sell)which puts it into unfortunate company among its peers. So, given all of these factors, investors may want to consider exiting this stock now before it falls back to Earth.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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PennyMac Mortgage Investment Trust (PMT - Free Report) has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because PMT is now in overbought territory with an RSI value of 84.24.
What is RSI?
RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.
Other Factors
Yet PMT’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions in PennyMac Mortgage’s stock as of late. This is especially true when investors dive into some of these revisions in order to get a better picture of PMT’s prospects for the near term.
Over the past two months, investors have witnessed 1 earnings estimate revisions lower compared to none higher for the current year. The consensus estimate for PMT has also been on a downward trend over the same time period too, as the estimate has fallen from $1.63/share two months ago to just $1.41/share today.
If this wasn’t enough, PennyMac Mortgage also has a Zacks Rank #5 (Strong Sell)which puts it into unfortunate company among its peers. So, given all of these factors, investors may want to consider exiting this stock now before it falls back to Earth.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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