PennyMac Financial (NYSE:PFSI) closed at $41.73 in the latest trading session, marking a -0.5% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.57%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, added 0.03%.
Wall Street will be looking for positivity from PFSI as it approaches its next earnings report date. On that day, PFSI is projected to report earnings of $3.08 per share, which would represent year-over-year growth of 234.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $679.65 million, up 124.32% from the year-ago period.
PFSI's full-year Zacks Consensus Estimates are calling for earnings of $11.83 per share and revenue of $2.62 billion. These results would represent year-over-year changes of +141.92% and +77.67%, respectively.
It is also important to note the recent changes to analyst estimates for PFSI. These revisions help to show the ever-changing nature of 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 11.97% higher. PFSI currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, PFSI is currently trading at a Forward P/E ratio of 3.55. For comparison, its industry has an average Forward P/E of 9.34, which means PFSI is trading at a discount to the group.
The Financial - Mortgage & Related Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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