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Sixth Street Specialty Lending, Inc. (TSLX) - free report >>
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Velocity Financial (VEL) Soars 7.1%: Is Further Upside Left in the Stock?
Velocity Financial (VEL - Free Report) shares rallied 7.1% in the last trading session to close at $10.85. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 10.1% loss over the past four weeks.
The performance of financial service providers is expected to improve in the upcoming period, given the higher interest rates and demand for real estate loans. Investors are also bullish on the sector on expectations of interest rate hikes this year. This possibly led to the optimistic stance of investors, which drove Velocity Financial.
This company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +20%. Revenues are expected to be $25.4 million, up 26.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Velocity Financial, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on VEL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Velocity Financial is a member of the Zacks Financial - Mortgage & Related Services industry. One other stock in the same industry, Sixth Street (TSLX - Free Report) , finished the last trading session 0.9% lower at $18.67. TSLX has returned 0.8% over the past month.
For Sixth St, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.49. This represents a change of +6.5% from what the company reported a year ago. Sixth St currently has a Zacks Rank of #4 (Sell).