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Chimera Investment (CIM) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Chimera Investment (CIM) closed at $7.43, marking a -1.46% move from the previous day. This move lagged the S&P 500's daily gain of 2.29%. Elsewhere, the Dow gained 1.99%, while the tech-heavy Nasdaq added 2.81%.

Heading into today, shares of the mortgage investor had lost 0.79% over the past month, lagging the Finance sector's gain of 12.36% and the S&P 500's gain of 19.13% in that time.

Investors will be hoping for strength from CIM as it approaches its next earnings release. In that report, analysts expect CIM to post earnings of $0.32 per share. This would mark a year-over-year decline of 43.86%. Meanwhile, our latest consensus estimate is calling for revenue of $114.70 million, down 22.21% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.84 per share and revenue of $368.60 million, which would represent changes of -62.67% and -38.8%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CIM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 60.56% lower. CIM currently has a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that CIM has a Forward P/E ratio of 8.98 right now. For comparison, its industry has an average Forward P/E of 6.05, which means CIM is trading at a premium to the group.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 28% 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.

To follow CIM in the coming trading sessions, be sure to utilize Zacks.com.


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