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Why PennyMac (PFSI) Could Be Positioned for a Surge

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PennyMac Financial Services, Inc. (PFSI - Free Report) is a mortgage banking and investment management company that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on PFSI’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that PennyMac could be a solid choice for investors.

Current Quarter Estimates for PFSI

In the past 30 days, one estimate has gone higher for PennyMac while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 96 cents  a share 30 days ago, to $1.10 today, a move of 14.6%.

Current Year Estimates for PFSI

Meanwhile, PennyMac’s current year figures are also looking quite promising, with one estimate moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from $3.36 per share 30 days ago to $3.66 per share today, an increase of 0.8%.

PennyMac Financial Services, Inc. Price and Consensus

Bottom Line

The stock has also started to move higher lately, adding 7.2% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So, investors may want to consider this Zacks Rank #1 (Strong Buy) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank stocks here.

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