What makes Granite Point Mortgage Trust (GPMT) a strong stock: buy now?



Impulse investing is the idea of ​​following a recent stock trend, which can be in any direction. In the “long” context, investors will “buy high, but hope to sell even more”. And for investors following this methodology, it is key to exploiting trends in stock prices; once a stock sets a course, it is more than likely that it will continue to move in that direction. The goal is that once a stock moves on a fixed path, it leads to timely and profitable trades.

While momentum is a popular characteristic of a stock, it can be difficult to define. The debate continues over which metrics are the best and the worst to focus on, but the Zacks Momentum Style Assessment, part of the Zacks Style Assessment, is helping us address this issue.

Below we will consider Granite Point Mortgage Fund (GPMT)which currently has a Momentum style score of B. We also discuss some of the main factors influencing the Momentum style score, such as price changes and revised earnings estimates.

It’s also important to note that style ratings work in addition to the Zacks Rank, our stock rating system, which has an impressive track record of excellence. Granite Point Mortgage Fund is currently rated Zacks # 1 (strong buy). Our research shows that stocks rated # 1 (strong buy) and # 2 (buy) by the Zacks, as well as a style rating A or B, outperform the market over the next one-month period.

You can see the current list of Zacks # 1 Ranked Stocks here >>>

Are you ready to surpass the market?

To see if GPMT is a promising choice for momentum, let’s take a look at some of the Momentum style elements to see if this real estate investment fund holds up.

A good benchmark for momentum for a stock is to look at its short-term price action, as it can reflect both current interest and whether buyers or sellers are currently gaining the upper hand. It is also helpful to compare a security to its industry, as this can help investors identify the top companies in a particular area.

GPMT shares are up 3.55% in the past week, while shares in the Zacks REIT and Equity Trust are up 1.59% over the same period. Stocks perform well over a longer time frame, as the monthly price change of 18.7% compares favorably with the industry’s 8.93%.

While any stock can see its price rise, it takes a real winner in order to consistently beat the market. This is why it can be helpful to look at longer term price metrics such as performance over the past three months or years. Shares of the Granite Point Mortgage Trust are up 26.95% in the last quarter and 141.95% in the last year. By comparison, the S&P 500 rallied only 8.79% and 34.24%, respectively.

Investors should also consider the average 20-day GPMT trading volume. Volume is a useful element in many ways, and the 20-day average establishes a good baseline price-to-volume ratio; A rising stock with above average volume is usually bullish, while a falling stock with above average volume is usually bearish. Right now, GPMT has 445,176 shares in the last 20 days.

Profit forecast

The Zacks Momentum Style Assessment also accounts for trends in valuation revisions in addition to price changes. Note that rating revision trends also remain at the heart of the Zacks rankings. A good path here might seem promising, and we recently observed this with GPMT.

In the last two months, 2 earnings estimates have improved from none of the full year estimates. The changes helped boost the GPMT consensus, which rose from $ 1.14 to $ 1.35 over the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards, while there have been no downward changes in the same time period.

Bottom line

Given these factors, it should come as no surprise that GPMT is the # 1 (Strong Buy) stock and boasts a Momentum B rating. If you are looking for a new pick that will grow anytime soon, make sure to keep the Granite Point Mortgage Trust on your shortlist.

Looking for the latest recommendations from Zacks Investment Research? Today you can download the top 7 stocks for the next 30 days. Click to get this free report

Granite Point Mortgage Trust Inc. (GPMT): Free Stock Analysis Report

To read this article on Zacks.com, click here.


Source link