Onity Group (ONIT) shares rallied 8.1% in the last trading session to close at $25.47. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.5% loss over the past four weeks.
Onity witnessed a strong price increase on optimism surrounding its re-branding as it started trading on the NYSE, reflecting the company’s transformation, growth and expansion into a balanced and diversified business.
This mortgage servicer is expected to post quarterly earnings of $1.44 per share in its upcoming report, which represents a year-over-year change of -50.3%. Revenues are expected to be $271.11 million, down 0.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Onity, 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 ONIT 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 >>>>
Onity is a member of the Zacks Financial - Mortgage & Related Services industry. One other stock in the same industry, UWM Holdings Corporation (UWMC), finished the last trading session 5.2% higher at $7.46. UWMC has returned -4.5% over the past month.
For UWM
Onity Group Inc. (ONIT) : Free Stock Analysis Report
UWM Holdings Corporation (UWMC) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
