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Highest Forward Earnings Yield in the Thrifts & Mortgage Finance Industry Detected in Shares of Pennymac Finan-A (PFSI, RDN, MTG, ESNT, NSM)

By Nick Russo

Below are the three companies in the Thrifts & Mortgage Finance industry with the highest forward earnings yields. Using projected earnings for the current fiscal year, the forward earnings yield is useful to compare a stock's return vs. owning a similar stock or other yield assets (e.g. bonds). Generally, the higher the earnings yield, the more undervalued the stock.

Pennymac Finan-A ranks highest with a forward earnings yield of 15.3%. Following is Radian Group Inc with a forward earnings yield of 14.5%. Mgic Invt Corp ranks third highest with a forward earnings yield of 12.9%.

Essent Group Ltd follows with a forward earnings yield of 11.8%, and Nationstar Mortg rounds out the top five with a forward earnings yield of 11.8%.

SmarTrend recommended that its subscribers protect gains by selling shares of Mgic Invt Corp on February 6th, 2018 by issuing a Downtrend alert when the shares were trading at $14.35. Since that call, shares of Mgic Invt Corp have fallen 22.8%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest forward earnings yield pennymac finan-a radian group inc mgic invt corp essent group ltd nationstar mortg

Ticker(s): PFSI RDN MTG ESNT NSM