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Strength Seen in Fannie Mae (FNMA): Can Its 7.3% Jump Turn into More Strength?
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Fannie Mae (FNMA - Free Report) shares rallied 7.3% in the last trading session to close at $5.27. 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 22.1% loss over the past four weeks.
Fannie Mae shares rose sharply yesterday after the Federal Housing Finance Agency aligned its mortgage-insurance policies with Freddie Mac, making it easier for eligible borrowers to cancel mortgage insurance as home values rise. The move could benefit FNMA by lowering monthly mortgage payments for eligible borrowers, potentially improving housing affordability and supporting demand for mortgage financing and mortgage-guarantee services. Meanwhile, the Fed’s recent interest rate hike keeps borrowing costs elevated, which could further drive demand for mortgage-guarantee products as borrowers seek more affordable financing options.
This company is expected to post quarterly earnings of $0.66 per share in its upcoming report, which represents a year-over-year change of +1.5%. Revenues are expected to be $7.43 billion, up 1.7% 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 Fannie Mae, 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 FNMA going forward to see if this recent jump can turn into more strength down the road.
Fannie Mae is part of the Zacks Financial - Mortgage & Related Services industry. Finance of America Companies Inc. (FOA - Free Report) , another stock in the same industry, closed the last trading session 0.6% lower at $14.45. FOA has returned -31.4% in the past month.
Finance of America Companies' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.21. Compared to the company's year-ago EPS, this represents a change of -9%. Finance of America Companies currently boasts a Zacks Rank of #5 (Strong Sell).
View the Zacks #1 Rank List
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Strength Seen in Fannie Mae (FNMA): Can Its 7.3% Jump Turn into More Strength?
Fannie Mae (FNMA - Free Report) shares rallied 7.3% in the last trading session to close at $5.27. 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 22.1% loss over the past four weeks.
Fannie Mae shares rose sharply yesterday after the Federal Housing Finance Agency aligned its mortgage-insurance policies with Freddie Mac, making it easier for eligible borrowers to cancel mortgage insurance as home values rise. The move could benefit FNMA by lowering monthly mortgage payments for eligible borrowers, potentially improving housing affordability and supporting demand for mortgage financing and mortgage-guarantee services. Meanwhile, the Fed’s recent interest rate hike keeps borrowing costs elevated, which could further drive demand for mortgage-guarantee products as borrowers seek more affordable financing options.
This company is expected to post quarterly earnings of $0.66 per share in its upcoming report, which represents a year-over-year change of +1.5%. Revenues are expected to be $7.43 billion, up 1.7% 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 Fannie Mae, 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 FNMA 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 >>>>
Fannie Mae is part of the Zacks Financial - Mortgage & Related Services industry. Finance of America Companies Inc. (FOA - Free Report) , another stock in the same industry, closed the last trading session 0.6% lower at $14.45. FOA has returned -31.4% in the past month.
Finance of America Companies' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.21. Compared to the company's year-ago EPS, this represents a change of -9%. Finance of America Companies currently boasts a Zacks Rank of #5 (Strong Sell).