Looking for a stock that might be in a good position to beat earnings at its next report? Consider PennyMac Financial Services, Inc. PFSI, a firm in the Financial - Mortgage & Related Services space, which could be a great candidate for another beat.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, PFSI has beaten estimates by at least 5% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, PFSI expected to post earnings of 60 cents per share, while it actually produced earnings of 65 cents per share, a beat of 8.3%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 88 cents per share, when it actually reported earnings per share of $1.06, representing a 20.4% positive surprise.
PENNYMAC FIN SV Price and EPS Surprise
PENNYMAC FIN SV Price and EPS Surprise | PENNYMAC FIN SV Quote
Thanks in part to this history, recent estimates have been moving higher for PennyMac Financial. In fact, the Earnings ESP for PFSI is positive, which is a great sign of a coming beat.
After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for PFSI, as the firm currently has a Zacks Earnings ESP of 2.60%, so another beat could be around the corner.
This is particularly true when you consider that PFSI has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that PFSI could see another beat at its next report, especially if recent trends are any guide.
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PENNYMAC FIN SV (PFSI): Free Stock Analysis Report
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