Why PennyMac Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT PennyMac Mortgage Investment has earned a respected four-star ranking.

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

PennyMac facts

Headquarters (founded)

Moorpark, Calif. (2009)

Market Cap

$1.6 billion

Industry

Mortgage REITs

Trailing-12-Month Revenue

$228.3 million

Management

Chairman/CEO Stanford Kurland
President/COO David Spector

Trailing-12-Month Return on Equity

12.7%

Cash / Debt

$108.8 million / $1.1 billion

Dividend Yield

8.4%

Competitors

Annaly Capital Management Capstead Mortgage MFA Financial 


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

On CAPS, 96% of the 105 members who have rated PennyMac believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, greenb95, tapped PennyMac as a particularly solid income opportunity:

Has great management and [PennyMac's] share price has been pretty much steadily climbing since Oct '11. Don't know how it's going to perform in the short term, but ... expecting a nice rise in stock price over the next couple years, based on expected '13, '14 earnings ($3.40, $3.56). In the meantime, I'm happy to collect that great dividend, thank you very much!

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, PennyMac may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here 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 PennyMac Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of Annaly Capital Management. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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