In the latest trading session, PennyMac Financial (PFSI - Free Report) closed at $37.92, marking a +0.58% move from the previous day. The stock lagged the S&P 500's daily gain of 1.31%. Elsewhere, the Dow gained 1.9%, while the tech-heavy Nasdaq added 1.01%.
PFSI will be looking to display strength as it nears its next earnings release. On that day, PFSI is projected to report earnings of $3.05 per share, which would represent year-over-year growth of 231.52%. Our most recent consensus estimate is calling for quarterly revenue of $676.95 million, up 123.43% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.08 per share and revenue of $2.56 billion. These totals would mark changes of +126.58% and +72.99%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for PFSI. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.83% higher. PFSI is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note PFSI's current valuation metrics, including its Forward P/E ratio of 3.4. For comparison, its industry has an average Forward P/E of 8.87, which means PFSI is trading at a discount to the group.
The Financial - Mortgage & Related Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.