On Jun 15, 2013, Zacks Investment Research upgraded
Ellington Financial LLC
) to a Zacks Rank #1 (Strong Buy).
ELLINGTON FINL (EFC): Free Stock Analysis
HOME LOAN SERVC (HLSS): Free Stock Analysis
KKR FINL HLDGS (KFN): Free Stock Analysis
NATIONSTAR MTGE (NSM): Free Stock Analysis
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Why the Upgrade?
Ellington Financial has been witnessing rising earnings estimates
on the back of strong fiscal first-quarter 2013 results.
Moreover, shares of this mortgage investment company appreciated
10.6% year to date.
On May 6, 2013, Ellington Financial reported first-quarter net
income of $40.3 million compared with $24.8 million in the
previous quarter. The sequential improvement was driven by higher
net investment income and lower operating expenses.
Net investment income was $10.6 million, which more than doubled
from the previous quarter. On a per share basis, net investment
income came in at 51 cents per share, substantially higher than
18 cents recorded in the prior quarter. Total expenses reduced
40.0% sequentially to $7.8 million. The decline was attributable
to a reduction in incentive fees and other operating expenses.
Over the last 60 days, the Zacks Consensus Estimate for 2013
jumped 38.2% to $4.05 per share as all estimates moved north for
Ellington Financial. For 2014, all the estimates moved higher,
pushing the Zacks Consensus Estimate up by 7.8% to $3.17 per
Other Stocks to Consider
Besides Ellington Financial, other stocks in the same industry
that are worth considering include
Home Loan Servicing Solutions, Ltd.
Nationstar Mortgage Holdings Inc.
) with a Zacks Rank #1, while
KKR Financial Holdings LLC
) carries a Zacks Rank #2 (Buy).