Nov 15, 2012 (SmarTrend(R) News Watch via COMTEX) --
Below are the three companies in the Mortgage REITs industry with the highest forward price to earnings (P/E) ratios. Forward P/E uses estimated earnings to compare relative value among companies in the same industry. Generally, the lower the forward P/E, the more undervalued a company is believed to be.Redwood Trust ranks highest with a a forward P/E ratio of 14.85. Following is CreXus Investment with a a forward P/E ratio of 11.04. MFA Financial ranks third highest with a a forward P/E ratio of 8.11.
Annaly Capital Management follows with a a forward P/E ratio of 6.85, and Invesco Mortgage Capital rounds out the top five with a a forward P/E ratio of 6.50.
SmarTrend recommended that subscribers consider buying shares of Redwood Trust on January 10th, 2012 as our technology indicated a new Uptrend was in progress when shares hit $11.03. Since that recommendation, shares of Redwood Trust have risen 39.9%. We continue to monitor Redwood Trust for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.
Write to Chip Brian at cbrian@mysmartrend.com
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