In the latest trading session, Two Harbors Investments (TWO) closed at $3.55, marking a -0.28% move from the previous day. This change was narrower than the S&P 500’s 0.41% loss on the day. At the same time, the Dow lost 0.24%, and the tech-heavy Nasdaq lost 0.06%.
Coming into today, shares of the real estate investment trust that invests in mortgage-backed securities had gained 4.4% in the past month. In that same time, the Finance sector gained 8.53%, while the S&P 500 gained 8.12%.
Investors will be hoping for strength from Two Harbors Investments as it approaches its next earnings release, which is expected to be November 8, 2022. On that day, Two Harbors Investments is projected to report earnings of $0.16 per share, which would represent a year-over-year decline of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $52.75 million, up 272.53% from the prior-year quarter.
Looking at 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 might also notice recent changes to analyst estimates for Two Harbors Investments. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 27.59% lower within the past month. Two Harbors Investments currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Two Harbors Investments is holding a Forward P/E ratio of 5.65. For comparison, its industry has an average Forward P/E of 8.42, which means Two Harbors Investments is trading at a discount to the group.
The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.