HomeStreet stock could be a promising game of recreation
HomeStreet, Inc. (NASDAQ: HMST) is a financial services company headquartered in Seattle, Washington, serving consumers and businesses in the western United States and Hawaii through its various operating subsidiaries. The company is primarily engaged in real estate lending, including mortgage banking, as well as commercial and consumer banks.
HMST is up 92% year over year and is up 116% since May bottom of $ 19.46. In addition, HomeStreet’s shares are up around 25% since the start of the year. However, HomeStreet The stock is down 20% from a record high of $ 52.46. This afternoon, HMST is trading up 1.2% at $ 41.69.
HomeStreet is expected to release its quarterly results after the market closed on Monday April 26th. HMST has exceeded expectations in three of the last four quarterly results. For the first quarter of 2020, HomeStreet missed analysts’ estimates by a margin of $ 0.01, reporting earnings per share (EPS) of $ 0.30. For the second quarter of 2020, HMST increased its EPS to $ 0.81, beating expectations by $ 0.50. For the third quarter of 2020, HomeStreet saw another surge in earnings, rising to $ 1.15 per share, beating estimates by $ 0.32. In its most recent quarterly report, HomeStreet posted earnings per share of $ 1.25, exceeding expectations by $ 0.18.
From a fundamental perspective, HMST isn’t the safest stock game available in the market, especially for a company in the financial sector, but it’s fascinating as a value / recreation game. HomeStreet stock is currently trading at a low price-earnings-ratio of 12.48. This is impressive given the bottom line that the company has improved over the past year.
Overall, it is entirely possible that HomeStreet stock will continue to fall in the short term, which opens up a great potential opportunity for investors to buy at a discount. However, given potential gains from appreciation and dividends, HomeStreet stock offers promising value even after its recent decline.