PennyMac Mortgage (PMT) Stock Jumps 5.7%: Will It Continue to Soar?

Company Overview - PennyMac Mortgage (PMT) shares increased by 5.7% to close at $13.41, following a significant trading volume compared to normal sessions, despite a prior 11.5% loss over the past four weeks [1][2] Market Context - The surge in PMT's stock price is attributed to a broader market rally, driven by optimism from Trump's announcement on April 9, 2025, regarding a 90-day pause on reciprocal tariffs for most trading partners, excluding China. This development alleviated immediate trade war fears and improved the economic outlook [2] Financial Performance Expectations - PennyMac Mortgage is projected to report quarterly earnings of $0.35 per share, reflecting a year-over-year decline of 10.3%. Revenue is expected to reach $87.46 million, marking a 17.9% increase from the previous year [3] - The consensus EPS estimate for PMT has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Comparison - PennyMac Mortgage is part of the Zacks REIT and Equity Trust industry, where another company, Ready Capital (RC), saw a 7.1% increase in its stock price, closing at $4.84, despite a -9.8% return over the past month [4] - Ready Capital's consensus EPS estimate has decreased by 14.5% over the past month to $0.13, representing a significant decline of 55.2% from the previous year, and it currently holds a Zacks Rank of 4 (Sell) [5]