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Chimera Investment (CIM) Gains But Lags Market: What You Should Know

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Chimera Investment (CIM) closed the most recent trading day at $9.16, moving +0.88% from the previous trading session. This change lagged the S&P 500's 1.24% gain on the day. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.35%.

Heading into today, shares of the mortgage investor had lost 5.52% over the past month, lagging the Finance sector's gain of 6.23% and the S&P 500's gain of 7.09% in that time.

Wall Street will be looking for positivity from CIM as it approaches its next earnings report date. This is expected to be August 5, 2020. The company is expected to report EPS of $0.29, down 44.23% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $110.10 million, down 22.36% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.41 per share and revenue of $497.80 million. These totals would mark changes of -37.33% and -17.35%, respectively, from last year.

Any recent changes to analyst estimates for CIM should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CIM is currently a Zacks Rank #5 (Strong Sell).

Looking at its valuation, CIM is holding a Forward P/E ratio of 6.44. This represents a discount compared to its industry's average Forward P/E of 9.27.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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