Is PennyMac Financial Services a Buy?
There haven't been many bright spots for investors in the financial sector during the COVID-19 crisis, but some companies have managed to prosper. One of them is PennyMac Financial Services (NYSE: PFSI), a mortgage lender and servicer.
The company has posted a year-to-date return of 23% through June 17, which beats the S&P 500 and the average return in the financial sector. Of course, investors want to know if this is a short-term blip fueled by stimulus or other factors, or if PennyMac is a solid long-term buy. Let's take a look.
PennyMac is coming off a strong first quarter where it posted record earnings of $3.73 per share, up from $0.59 per share in the first quarter of 2019, on $721 million in revenue and $306 million in net income. Also, PennyMac serviced $384 billion in loans in the first quarter, up 18% year over year.
Source Fool.com
