This mortgage company is ranked #1, Strong Buy, by Zacks, who considers the stock undervalued. And 13 hedge funds now have holdings in the company and interest is growing, according to Insider Monkey.
PennyMac Financial Services, Inc. (PFSI)
From AlphaProfit Sector Investors’ Newsletter
Leading mortgage originator & servicer PennyMac Financial Services, Inc. (PFSI) is faring well. The firm earned $1.06 a share in the third quarter, beating analysts’ forecast by 15%. Loan origination rose 28% sequentially as PennyMac gained market share. Its loan servicing portfolio grew 6%.
To drive growth in 2017, PennyMac plans to focus on the purchase money loan segment instead of refinancing, and enter the wholesale market.
PennyMac shares appeal to growth-at-a-reasonable-price investors They trade at 6.1X-forward EPS versus prospects for high single-digit EPS growth over the next 5 years. (Next earnings: Early February 2017)
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com, 281-565-6963, December 2016