Trading Watch: Scanning the $22.94 Level for PennyMac Financial Services, Inc. (NYSE:PFSI)

As we move further into the year, individual investors may be reviewing the stock portfolio. Many investors will be trying to figure out if certain stocks will be able to muster up some momentum moving forward. To get a sense of where a stock might be going, investors often study historical information and where the stock has been. Over the past 12 weeks, shares of PennyMac Financial Services, Inc. (NYSE:PFSI) have seen a move of 8.88%. Looking back over the past month, shares have moved 2.41%. Over the previous week, the stock has moved 1.73%. Taking a peek at some possible support and resistance levels, we note that the 52-week high is presently sitting at 24.4, and the 52-week low is presently 19.15. Interested investors will be paying close attention to shares if they begin to approach either of those levels.

When it comes to investing in the stock market, there are many different styles and strategies that can be used. Some investors will want to do all the work themselves to try to adopt a specific plan all their own. Others will attempt to replicate strategies that have worked for others in the past. Of course, there is no sure bet strategy that will produce instant investing success. Taking the time to study all the different investing methods may be useful for some, but not as helpful for others. What worked in the past may not work again in the future. Investors will often need to decide how much risk they are willing to take on when investing in stocks. Once the risk appetite is figured out, they may want to decide how much and how aggressive they want to invest.

After a recent stock review, we can see that PennyMac Financial Services, Inc. (NYSE:PFSI) currently has an average broker rating of 1.83. Based on analysts polled by Zacks Research, this rating lands on an easy to follow scale from 1 to 5 where a 1 would indicate a Strong Buy and a 5 would represent a Strong Sell recommendation. Sell-side analysts often provide recommendations for stocks that they regularly cover. Different institutions may use various terminologies for how they describe their ratings. Because individual analyst ratings can vary, investors may choose to follow the average in order to track the general sell-side sentiment. Looking a little further, we can see that 4 polled analysts currently have the stock rated as a Strong Buy or Buy.

Following some earnings data for PennyMac Financial Services, Inc. (NYSE:PFSI), we note that the current quarter EPS consensus estimate is 0.7. This EPS estimate is using data provided by 5 sell-side analysts polled by Zacks Research. This consensus estimate may vary from other data outlets providing consensus projections. Last quarter, the company reported a quarterly EPS of 0.63. Investors often pay extra close to the actual numbers when they are reported. If the actual comes in way under what the analysts were predicting, investors might want to take a deeper look to see what is going on with the stock. Investors may also be on the lookout for positive surprises on earnings beats. When a company reports actual earnings results, the surprise factor may cause the stock price to move sharply in either direction. Because it is difficult to gauge how a stock will react after the earnings report, investors may trade with increased caution during this period of time.

As we move closer towards the end of the year, investors might be looking over the portfolio and trying to see what has been working and what hasn’t been. Investors may be studying the most recent earnings reports of stocks they own in order to make sure that everything is still in order. Active investors might be double checking the portfolio to make sure that it is properly diversified. There might be a few adjustments that need to be made in order to keep the holdings balanced. Of course, nobody can say for sure which way the momentum will shift over the next couple of quarters, but being prepared for any situation is generally considered to be a good idea.  

Investors tracking shares of PennyMac Financial Services, Inc. (NYSE:PFSI) may be closely following analyst price target estimates. Reviewing company shares, we can see that the current average target price is 25. Keeping track of all the day to day stock market happenings can sometimes be a burden, even for the most seasoned investors. Investors may use sell-side analyst target estimates to help figure out if their assumptions about the future direction of a particular stock price are shared. Of course, nobody can project the future stock price of a company with exact precision. Investors may use analyst target prices as a good starting point for comparing current stock prices and making educated projections themselves.

Investing in the stock market will always involve some level of risk. Investors often have to determine how much they are willing to risk, and try to project what the potential reward could be. Taking on too much risk may put the average investor out of their comfort zone. Finding that sweet spot for risk appetite may help investors get on the correct path to conquering the markets. As companies continue to report quarterly earnings, investors will be watching which companies post larger than expected surprises. Analysts will also be watching the numbers closely in order to make sense of the results and update estimates accordingly.