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Looking At Two Harbors Investment Corp (NYSE:TWO) From All Angles

Michael Crabtree

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Two Harbors Investment Corp (NYSE:TWO) due to its excellent fundamentals in more than one area. TWO is a company with a a strong track record of performance, trading at a great value. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, read the full report on Two Harbors Investment here.

Solid track record and good value

TWO delivered a bottom-line expansion of 17.25% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did TWO outperformed its past performance, its growth also exceeded the Mortgage REITs industry expansion, which generated a -0.57% earnings growth. This is what investors like to see! TWO’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if TWO’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the mortgage reits industry, TWO is also trading below its peers, relative to earnings generated. This further reaffirms that TWO is potentially undervalued.

NYSE:TWO Income Statement Export August 7th 18

Next Steps:

For Two Harbors Investment, I’ve compiled three essential factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for TWO’s future growth? Take a look at our free research report of analyst consensus for TWO’s outlook.
  2. Financial Health: Is TWO’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TWO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.