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Altisource Portfolio (ASPS) Surges 23.3%: Is This an Indication of Further Gains?

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Altisource Portfolio Solutions (ASPS) shares rallied 23.3% in the last trading session to close at $7.21. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 34.8% loss over the past four weeks.

The uptick is attributable to the strong origination volume in the broader market, supported by high refinance activity. Notably, rising home prices have also boosted the demand for mortgage originations and this is a positive for the company’s originations-related business. Further, active forbearance volumes and delinquencies are driving the demand for the company’s servicing defaulted loans.

Price and Consensus

Price Consensus Chart for ASPS
Price Consensus Chart for ASPS

This real estate services firm is expected to post quarterly loss of $0.35 per share in its upcoming report, which represents a year-over-year change of -305.9%. Revenues are expected to be $49.25 million, down 56.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Altisource Portfolio, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ASPS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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