Investments in the two ports (OF THEM – Free Report) closed at $3.15 in the last trading session, marking a +0.32% move from the previous day. The stock lagged the S&P 500 daily gain of 2.65%. Meanwhile, the Dow Jones gained 1.86% and the tech-heavy Nasdaq gained 0.24%.
As today approaches, shares of the real estate investment trust that invests in mortgage-backed securities had lost 34.72% over the past month, lagging the financial sector’s loss of 8.17% and the 8.99% loss of the S&P 500 during this period.
Two Harbors Investments will look to show strength ahead of its next earnings release, which is expected to be November 8, 2022. On that day, Two Harbors Investments is expected to report earnings of $0.16 per share, which would represent a year- decrease of 33.33% over one year. Meanwhile, our latest consensus estimate calls for revenue of $52.75 million, up 272.53% from the prior year quarter.
Looking to the full year, our Zacks consensus estimates suggest analysts are expecting earnings of $0.63 per share and revenue of $155.08 million. These totals would mark changes of -23.17% and +95.26%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Two Harbors Investments. Recent revisions tend to reflect the latest short-term trading trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 Zacks Consensus’ EPS estimate fell 27.59% over the past month. Two Harbors Investments currently has a Zacks rank of #3 (Hold).
Valuation is also important, so investors should note that Two Harbors Investments has a forward P/E ratio of 4.98 at this time. This valuation marks a discount compared to the average Forward P/E of its sector of 7.23.
The REIT and equity trust industry is part of the finance sector. This industry currently has a Zacks Industry Rank of 135, which places it in the bottom 47% of all 250+ industries.
The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to track all of these stock movement metrics, and more, in future trading sessions.