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Sixth Street Specialty Lending, Inc. (TSLX) - free report >>
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Onity (ONIT) Surges 19.7%: Is This an Indication of Further Gains?
Onity Group (ONIT - Free Report) shares rallied 19.7% in the last trading session to close at $33.97. 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 4.2% loss over the past four weeks.
Shares of ONIT rallied for the second straight trading session and touched a new 52-week high of $36.91 on Friday. As the Federal Reserve cut the interest rates, mortgage rates came down. With the 30-year fixed mortgage rate dipping to 5.79%, well below its 52-week average, the demand for refinancing activities has substantially improved. These indicate enhanced prospects for the company in the near term. Thus, investors turned bullish on the ONIT stock, driving it higher.
This mortgage servicer is expected to post quarterly earnings of $2.12 per share in its upcoming report, which represents a year-over-year change of +71%. Revenues are expected to be $254.13 million, down 0.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and 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 #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Onity belongs to the Zacks Financial - Mortgage & Related Services industry. Another stock from the same industry, Sixth Street (TSLX - Free Report) , closed the last trading session 1.1% higher at $20.68. Over the past month, TSLX has returned -3.4%.
Sixth St's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.58. Compared to the company's year-ago EPS, this represents a change of -3.3%. Sixth St currently boasts a Zacks Rank of #3 (Hold).