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Strength Seen in Altisource Portfolio (ASPS): Can Its 8.4% Jump Turn into More Strength?

·2 min read

Altisource Portfolio Solutions (ASPS) shares soared 8.4% in the last trading session to close at $11.19. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.2% loss over the past four weeks.

The increased investor optimism can be attributed to high inflation and a rise in rates that are expected to result in a spike in delinquency rates and expand the company’s addressable market for default services. A likely pick-up in foreclosures and new product launches in the origination segment are expected to support business volume. This has likely sparked investor interest in the stock.

This real estate services firm is expected to post quarterly loss of $0.25 per share in its upcoming report, which represents a year-over-year change of +68.8%. Revenues are expected to be $48.92 million, up 17.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and 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 >>>>

Altisource Portfolio belongs to the Zacks REIT and Equity Trust industry. Another stock from the same industry, Armour Residential REIT (ARR), closed the last trading session 2.2% lower at $6.28. Over the past month, ARR has returned -11.2%.

For Armour Residential REIT , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.31. This represents a change of +24% from what the company reported a year ago. Armour Residential REIT currently has a Zacks Rank of #1 (Strong Buy).


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