Redwood Trust (RWT) Moves 9.5% Higher: Will This Strength Last?

Group 1 - Redwood Trust (RWT) shares increased by 9.5% to close at $5.42, supported by higher trading volume compared to normal sessions, following a 21.2% loss over the past four weeks [1][2] - The stock price surge is attributed to a broader market rally due to optimism from Trump's announcement of a 90-day pause on reciprocal tariffs for most trading partners, which is expected to ease cost pressures and improve profitability for mREIT stocks [2] - Redwood Trust is projected to report quarterly earnings of $0.16 per share, reflecting a year-over-year increase of 100%, with expected revenues of $26.76 million, up 11.5% from the previous year [3] Group 2 - The consensus EPS estimate for Redwood Trust has been revised 2.7% lower in the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] - Redwood Trust holds a Zacks Rank of 3 (Hold), while another stock in the same industry, Franklin BSP (FBRT), saw a 4.1% increase to $11.56 but has returned -16.2% over the past month [4] - Franklin BSP's consensus EPS estimate remains unchanged at $0.33, representing a year-over-year decrease of 19.5%, and it currently has a Zacks Rank of 5 (Strong Sell) [5]