PennyMac Mortgage (PMT) shares soared 5.7% in the last trading session to close at $13.41. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.5% loss over the past four weeks.
PennyMac Mortgage’s surge in its stock price follows the broader market rally driven by the optimism surrounding Trump’s announcement on April 9, 2025, of a 90-day pause on reciprocal tariffs for most trading partners, excluding China. The tariff pause reduced immediate fears of a trade war, fostering a more favorable economic outlook. The tariff pause will likely ease cost pressure, which improves margins and enhances profitability for mREIT stocks. These factors have boosted investor confidence in mREIT stock like PMT.
This specialty finance company is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of -10.3%. Revenues are expected to be $87.46 million, up 17.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For PennyMac Mortgage, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PMT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
PennyMac Mortgage is part of the Zacks REIT and Equity Trust industry. Ready Capital (RC), another stock in the same industry, closed the last trading session 7.1% higher at $4.84. RC has returned -9.8% in the past month.
For Ready Capital
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PennyMac Mortgage Investment Trust (PMT): Free Stock Analysis Report Ready Capital Corp (RC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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