PennyMac Financial (PFSI - Free Report) closed the most recent trading day at $42.25, moving -1.15% from the previous trading session. This change was narrower than the S&P 500's 2.42% loss on the day. At the same time, the Dow lost 2.84%, and the tech-heavy Nasdaq lost 2.59%.
Coming into today, shares of the mortgage banking and investment management company had gained 27.85% in the past month. In that same time, the Finance sector gained 7.85%, while the S&P 500 gained 4.5%.
Wall Street will be looking for positivity from PFSI as it approaches its next earnings report date. In that report, analysts expect PFSI to post earnings of $3.08 per share. This would mark year-over-year growth of 234.78%. Meanwhile, our latest consensus estimate is calling for revenue of $679.65 million, up 124.32% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.83 per share and revenue of $2.62 billion. These totals would mark changes of +141.92% and +77.67%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PFSI. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 6.91% higher. PFSI is currently a Zacks Rank #1 (Strong Buy).
Investors should also note PFSI's current valuation metrics, including its Forward P/E ratio of 3.61. Its industry sports an average Forward P/E of 9.01, so we one might conclude that PFSI is trading at a discount comparatively.
The Financial - Mortgage & Related Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.