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Mr Cooper (COOP) Gains But Lags Market: What You Should Know

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In the latest trading session, Mr Cooper (COOP - Free Report) closed at $12.44, marking a +0.89% move from the previous day. This change lagged the S&P 500's 1.54% gain on the day. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 1.87%.

Coming into today, shares of the reinsurance company had gained 9.41% in the past month. In that same time, the Finance sector gained 0.59%, while the S&P 500 gained 0.57%.

Investors will be hoping for strength from COOP as it approaches its next earnings release. The company is expected to report EPS of $0.92, down 28.68% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $500.20 million, up 25.36% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.21 per share and revenue of $2.03 billion. These totals would mark changes of +10.79% and +7.48%, respectively, from last year.

Any recent changes to analyst estimates for COOP should also be noted by investors. 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.

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. The Zacks Consensus EPS estimate has moved 24.93% higher within the past month. COOP currently has a Zacks Rank of #4 (Sell).

Investors should also note COOP's current valuation metrics, including its Forward P/E ratio of 2.93. For comparison, its industry has an average Forward P/E of 12.98, which means COOP is trading at a discount to the group.

The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 234, which puts it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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