We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Factors That Make Ellington Financial Stock a Solid Pick
Read MoreHide Full Article
Ellington Financial Inc. (EFC - Free Report) looks like an attractive investment option right now, given its strong fundamentals and promising prospects. Further, lower mortgage rates will continue leading to higher refinancing and originations.
Analysts are also bullish on the stock. The Zacks Consensus Estimate for Ellington Financial’s earnings has moved 4.1% and 4.5% upward for 2019 and 2020, respectively, over the past 30 days. The stock currently sports a Zacks Rank #1 (Strong Buy).
The company’s shares have rallied 14.4% over the past year, compared with the industry’s rise of 22.2%.
Here's Why Ellington Financial is Worth a Bet
Earnings strength: Given the relatively higher interest rates, Ellington Financial witnessed a 7.2% decline in earnings over the past three to five years. However, this trend is expected to reverse in the near term as evident from its projected earnings growth rate of 26.2% and 3.4% for 2019 and 2020, respectively.
Also, the company has an impressive earnings surprise history. It has outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 13.6%.
Revenue growth: Ellington Financial’s revenues witnessed a CAGR of 9.5% over the last five years (2014-2018). Additionally, rise in refinancing activities and higher origination volume are expected to continue supporting revenues. The top line is expected to increase 15.8% in 2019 and 15% in 2020.
Stock looks undervalued: If we compare Ellington Financial’s price-to-book (P/B) and price-to-earnings (F1) ratios with the respective industry averages, the stock appears undervalued. Its P/B and P/E ratios are 0.92 and 10.23 versus the respective industry averages of 1.30 and 10.85.
Other Key Picks
Over the past 30 days, Hilltop Holdings (HTH - Free Report) witnessed an upward earnings estimate revision of 13% for 2019. Its share price has surged 33.7% year to date. The stock sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Moody's (MCO - Free Report) 2019 earnings estimates have been revised 1.5% upward over the past 30 days. Its shares have rallied 59.8% so far this year. The stock carries a Zacks Rank #2 (Buy).
Over the past 30 days, Eaton Vance’s (EV - Free Report) fiscal 2020 earnings estimates have moved nearly 1% upward. Shares of this Zacks Rank #2 company have rallied 36.8% so far this year.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
3 Factors That Make Ellington Financial Stock a Solid Pick
Ellington Financial Inc. (EFC - Free Report) looks like an attractive investment option right now, given its strong fundamentals and promising prospects. Further, lower mortgage rates will continue leading to higher refinancing and originations.
Analysts are also bullish on the stock. The Zacks Consensus Estimate for Ellington Financial’s earnings has moved 4.1% and 4.5% upward for 2019 and 2020, respectively, over the past 30 days. The stock currently sports a Zacks Rank #1 (Strong Buy).
The company’s shares have rallied 14.4% over the past year, compared with the industry’s rise of 22.2%.
Here's Why Ellington Financial is Worth a Bet
Earnings strength: Given the relatively higher interest rates, Ellington Financial witnessed a 7.2% decline in earnings over the past three to five years. However, this trend is expected to reverse in the near term as evident from its projected earnings growth rate of 26.2% and 3.4% for 2019 and 2020, respectively.
Also, the company has an impressive earnings surprise history. It has outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 13.6%.
Revenue growth: Ellington Financial’s revenues witnessed a CAGR of 9.5% over the last five years (2014-2018). Additionally, rise in refinancing activities and higher origination volume are expected to continue supporting revenues. The top line is expected to increase 15.8% in 2019 and 15% in 2020.
Stock looks undervalued: If we compare Ellington Financial’s price-to-book (P/B) and price-to-earnings (F1) ratios with the respective industry averages, the stock appears undervalued. Its P/B and P/E ratios are 0.92 and 10.23 versus the respective industry averages of 1.30 and 10.85.
Other Key Picks
Over the past 30 days, Hilltop Holdings (HTH - Free Report) witnessed an upward earnings estimate revision of 13% for 2019. Its share price has surged 33.7% year to date. The stock sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Moody's (MCO - Free Report) 2019 earnings estimates have been revised 1.5% upward over the past 30 days. Its shares have rallied 59.8% so far this year. The stock carries a Zacks Rank #2 (Buy).
Over the past 30 days, Eaton Vance’s (EV - Free Report) fiscal 2020 earnings estimates have moved nearly 1% upward. Shares of this Zacks Rank #2 company have rallied 36.8% so far this year.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>