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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 (NYSE: PMT  ) 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


Mortgage REITs

Trailing-12-Month Revenue

$228.3 million


Chairman/CEO Stanford Kurland
President/COO David Spector

Trailing-12-Month Return on Equity


Cash / Debt

$108.8 million / $1.1 billion

Dividend Yield



Annaly Capital Management (NYSE: NLY  ) Capstead Mortgage (NYSE: CMO  ) 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.

Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 31, 2013, at 4:35 PM, GrampaRick wrote:

    A report in "Inside Mortgage Finance" on January 8, 2013 indicated that PennyMac may "de-REIT". It indicated that they might drop their status as a REIT.

    Question: If they drop that designation, then that means that would not have to distribute 90% of their earnings in dividends. How would that affect their stock price?

    They are a good company & 90% of earnings is pretty sweet.

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9/28/2016 4:02 PM
PMT $15.41 Up +0.05 +0.33%
PennyMac Mortgage… CAPS Rating: ****