On Aug 19, Zacks Investment Research upgraded
Home Loan Servicing Solutions, Ltd.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Home Loan Servicing has been witnessing rising earnings estimates
on the back of rise in dividend, strong second-quarter 2014
results, which included improved revenues and a steady capital
position. The present long-term expected earnings growth rate for
the company is 8.5%. Further, the company witnessed positive
earnings surprise in all the trailing four quarters, with an
average beat of 18%.
Home Loan Servicing reported second-quarter results on Jul 17 with
earnings per share coming in at 76 cents, comfortably beating the
Zacks Consensus Estimate of 55 cents. The figure also came in much
higher than 48 cents earned in the year-ago quarter.
Robust results were primarily driven by strong top-line growth,
partially offset by higher operating expenses.
On Aug 12, 2014, the mortgage investment company increased its
dividend per common share to 18 cents from 16 cents, for the months
of August and September.
Over the last 30 days, the Zacks Consensus Estimate for 2014
increased 9.2% to $2.49 per share. For 2015, the Zacks Consensus
Estimate inched up 0.9% to $2.31 over the same time period.
Other Stocks to Consider
Apart from Home Loan Servicing, other mortgage investment firms
worth considering include Essent Group Ltd. (
), JGWPT Holdings Inc. (
) and PennyMac Financial Services, Inc. (
). While Essent Group sports a Zacks Rank #1 (Strong Buy), both
JGWPT Holdings and PennyMac Financial carry a Zacks Rank #2
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HOME LOAN SERVC (HLSS): Free Stock Analysis
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ESSENT GROUP (ESNT): Free Stock Analysis Report
PENNYMAC FIN SV (PFSI): Free Stock Analysis
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