Why Two Harbors Is Poised to Keep Rallying

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, real estate investment trust Two Harbors Investment has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Two Harbors and see what CAPS investors are saying about the stock right now.

Two Harbors facts

Headquarters (Founded)

Minnetonka, Minn. (2007)

Market Cap

$3.4 billion

Industry

Mortgage REITs

Trailing-12-Month Revenue

$170.7 million

Managemen

CEO Thomas Siering (since 2009)
CFO Brad Farrell (since 2012)

Return on Equity (Average, Past 3 Years)

8.2%

Cash/Debt

$2.3 billion / $14.2 billion

Dividend Yield

12.6%

Competitors

Annaly Capital Management
New York Mortgage Trust

Redwood Trust


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 99% of the 184 members who have rated Two Harbors believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, PKandJulia, succinctly summed up the Two Harbors bull case for our community:

Buy low, sell high. ... Housing and mortgage paper (and banks too) are beginning a recovery. [Two Harbors] appears to have solid management and are invested right there. At book value or below, that should be a successful combination.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Two Harbors may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Two Harbors Is Poised to Keep Rallying originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Annaly Capital Management. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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