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Best Mortgage Stocks to Buy Now (2024)
Top mortgage stocks in 2024 ranked by overall Zen Score. See the best mortgage stocks to buy now, according to analyst forecasts for the mortgage finance industry.

Industry: Mortgage Finance

Zen Score Price Valuation Financials Forecast Earnings & Revenue Dividends Ownership Technicals

Ticker	Company	Exchange	Industry	Market Cap	Price	1d %	EBITDA	P/E	D/E
WD	WALKER & DUNLOP INC	NYSE	Mortgage Finance	$3.30B	$97.84	0.02%	$419.85M	35.58x	1.22
COOP	MR COOPER GROUP INC	NASDAQ	Mortgage Finance	$5.43B	$83.97	0.05%	$1.49B	8.57x	2.35
VEL	VELOCITY FINANCIAL INC	NYSE	Mortgage Finance	$605.95M	$18.37	1.16%	$81.91M	10.26x	9.21
GHI	GREYSTONE HOUSING IMPACT INVESTORS LP	NYSE	Mortgage Finance	$362.14M	$15.55	-0.19%	$113.91M	8.25x	3.02
CNF	CNFINANCE HOLDINGS LTD	NYSE	Mortgage Finance	$116.59M	$1.70	0.12%	$28.68M	5.12x	3.08
IOR	INCOME OPPORTUNITY REALTY INVESTORS INC	NYSEMKT	Mortgage Finance	$68.10M	$16.70	-1.47%	$8.77M	9.77x	0.00
GHLD	GUILD HOLDINGS CO	NYSE	Mortgage Finance	$922.01M	$15.03	4.09%	$79.40M	34.16x	2.26
PFSI	PENNYMAC FINANCIAL SERVICES INC	NYSE	Mortgage Finance	$4.75B	$93.31	-0.42%	$259.23M	30.39x	4.55
UWMC	UWM HOLDINGS CORP	NYSE	Mortgage Finance	$11.34B	$7.10	-5.46%	$411.04M	88.75x	90.53
SNFCA	SECURITY NATIONAL FINANCIAL CORP	NASDAQ	Mortgage Finance	$155.39M	$6.75	-0.74%	$30.39M	10.23x	3.57
OCN	OCWEN FINANCIAL CORP	NYSE	Mortgage Finance	$204.85M	$26.23	-3.07%	$572.80M	31.99x	29.29
ECPG	ENCORE CAPITAL GROUP INC	NASDAQ	Mortgage Finance	$1.12B	$47.11	-2.06%	$74.72M	-5.52x	3.91
RKT	ROCKET COMPANIES INC	NYSE	Mortgage Finance	$27.18B	$13.67	-2.98%	$278.59M	91.13x	20.89
LDI	LOANDEPOT INC	NYSE	Mortgage Finance	$686.01M	$2.12	-1.85%	$88.22M	-3.79x	17.28
AAMC	ALTISOURCE ASSET MANAGEMENT CORP	NYSEMKT	Mortgage Finance	$7.25M	$2.84	-0.70%	-$28.50M	-0.26x	-0.06

Mortgage Stocks FAQ

What are the best mortgage stocks to buy right now in May 2024?

According to Zen Score, the 3 best mortgage finance stocks to buy right now are:

1. Walker & Dunlop (NYSE:WD)

Walker & Dunlop (NYSE:WD) is the top mortgage stock with a Zen Score of 41, which is 20 points higher than the mortgage industry average of 21. It passed 15 out of 38 due diligence checks and has strong fundamentals. Walker & Dunlop has seen its stock return 53.09% over the past year, overperforming other mortgage stocks by 28 percentage points.

Walker & Dunlop has an average 1 year price target of $100.00, an upside of 2.21% from Walker & Dunlop's current stock price of $97.84.

Walker & Dunlop stock has a consensus Hold recommendation according to Wall Street analysts. Of the 2 analysts covering Walker & Dunlop, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Mr Cooper Group (NASDAQ:COOP)

Mr Cooper Group (NASDAQ:COOP) is the second best mortgage stock with a Zen Score of 36, which is 15 points higher than the mortgage industry average of 21. It passed 12 out of 33 due diligence checks and has average fundamentals. Mr Cooper Group has seen its stock return 95.28% over the past year, overperforming other mortgage stocks by 70 percentage points.

Mr Cooper Group has an average 1 year price target of $89.33, an upside of 6.39% from Mr Cooper Group's current stock price of $83.97.

Mr Cooper Group stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Mr Cooper Group, 50% have issued a Strong Buy rating, 33.33% have issued a Buy, 16.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Velocity Financial (NYSE:VEL)

Velocity Financial (NYSE:VEL) is the third best mortgage stock with a Zen Score of 35, which is 14 points higher than the mortgage industry average of 21. It passed 12 out of 33 due diligence checks and has average fundamentals. Velocity Financial has seen its stock return 105.94% over the past year, overperforming other mortgage stocks by 81 percentage points.

Velocity Financial has an average 1 year price target of $18.60, an upside of 1.25% from Velocity Financial's current stock price of $18.37.

Velocity Financial stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Velocity Financial, 40% have issued a Strong Buy rating, 40% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the mortgage stocks with highest dividends?

Out of 3 mortgage stocks that have issued dividends in the past year, the 3 mortgage stocks with the highest dividend yields are:

1. Greystone Housing Impact Investors (NYSE:GHI)

Greystone Housing Impact Investors (NYSE:GHI) has an annual dividend yield of 9.94%, which is 6 percentage points higher than the mortgage industry average of 4.07%. Greystone Housing Impact Investors's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Greystone Housing Impact Investors's dividend has shown consistent growth over the last 10 years.

Greystone Housing Impact Investors's dividend payout ratio of 82% indicates that its high dividend yield is sustainable for the long-term.

2. Guild Holdings Co (NYSE:GHLD)

Guild Holdings Co (NYSE:GHLD) has an annual dividend yield of 3.33%, which is -1 percentage points lower than the mortgage industry average of 4.07%.

Guild Holdings Co's dividend payout ratio of 113.6% indicates that its dividend yield might not be sustainable for the long-term.

3. Walker & Dunlop (NYSE:WD)

Walker & Dunlop (NYSE:WD) has an annual dividend yield of 2.6%, which is -1 percentage points lower than the mortgage industry average of 4.07%. Walker & Dunlop's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Walker & Dunlop's dividend has shown consistent growth over the last 10 years.

Walker & Dunlop's dividend payout ratio of 92.4% indicates that its dividend yield might not be sustainable for the long-term.

Why are mortgage stocks down?

Mortgage stocks were down -0.57% in the last day, and up 3.62% over the last week.

We couldn't find a catalyst for why mortgage stocks are down.

What are the most undervalued mortgage stocks?

Based on WallStreetZen's Valuation Score, the 3 most undervalued mortgage stocks right now are:

1. Mr Cooper Group (NASDAQ:COOP)

Mr Cooper Group (NASDAQ:COOP) is the most undervalued mortgage stock based on WallStreetZen's Valuation Score. Mr Cooper Group has a valuation score of 57, which is 31 points higher than the mortgage industry average of 26. It passed 4 out of 7 valuation due diligence checks.

Mr Cooper Group's stock has gained 95.28% in the past year. It has overperformed other stocks in the mortgage industry by 70 percentage points.

2. Velocity Financial (NYSE:VEL)

Velocity Financial (NYSE:VEL) is the second most undervalued mortgage stock based on WallStreetZen's Valuation Score. Velocity Financial has a valuation score of 57, which is 31 points higher than the mortgage industry average of 26. It passed 4 out of 7 valuation due diligence checks.

Velocity Financial's stock has gained 105.94% in the past year. It has overperformed other stocks in the mortgage industry by 81 percentage points.

3. Cnfinance Holdings (NYSE:CNF)

Cnfinance Holdings (NYSE:CNF) is the third most undervalued mortgage stock based on WallStreetZen's Valuation Score. Cnfinance Holdings has a valuation score of 43, which is 17 points higher than the mortgage industry average of 26. It passed 3 out of 7 valuation due diligence checks.

Cnfinance Holdings's stock has dropped -37.27% in the past year. It has underperformed other stocks in the mortgage industry by -62 percentage points.

Are mortgage stocks a good buy now?

36.36% of mortgage stocks rated by analysts are a buy right now. On average, analysts expect mortgage stocks to rise by 9.99% over the next year.

What is the average p/e ratio of the mortgage finance industry?

The average P/E ratio of the mortgage finance industry is 64.08x.

WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.