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Strength Seen in Chimera (CIM): Can Its 9.7% Jump Turn into More Strength?

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Chimera Investment (CIM - Free Report) shares rallied 9.7% in the last trading session to close at $11.49. 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 21.5% loss over the past four weeks.

Chimera’s surge in its stock price follows the broader market rally driven by the optimism surrounding Trump’s announcement on April 9, 2025, of a 90-day pause on reciprocal tariffs for most trading partners, excluding China. The tariff pause reduced immediate fears of a trade war, fostering a more favorable economic outlook.  The tariff pause will likely ease cost pressure, which improves margins and enhances profitability for mREIT stocks. Additionally, the company has announced its quarterly dividend last month, demonstrating continued profitability and strength. These factors have boosted investor confidence in CIM stock.

This mortgage investor is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of +5.6%. Revenues are expected to be $70.4 million, up 8.1% 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 Chimera, 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 CIM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Chimera belongs to the Zacks REIT and Equity Trust industry. Another stock from the same industry, Angel Oak Mortgage (AOMR - Free Report) , closed the last trading session 4.8% higher at $8.03. Over the past month, AOMR has returned -20.1%.

Angel Oak's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.27. Compared to the company's year-ago EPS, this represents a change of +145.5%. Angel Oak currently boasts a Zacks Rank of #3 (Hold).


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