Is Granite Point Mortgage Trust Inc. (NYSE:GPMT) A Buy? 0.23373 Net Profit Under Review

Granite Point Mortgage Trust Inc. (NYSE:GPMT) has posted year over year net profit growth of 0.23373.  The net profit number is the nuts and bolts of a firm’s financial health.  Healthy and consistent net profit growth provide investors with confidence that the firm will continue to be profitable and result in the share price moving in a positive direction.  On the other hand, consistent negative numbers could raise serious red flags for shareholders or potential shareholders.

As we move into the second half of the year, investors will be keeping a close watch on their portfolios. There are plenty of financial gurus who are predicting the end of the bull market run, and there are plenty on the other side who believe that stocks are bound for greater heights. Whichever way the markets go, investors will need to watch which companies are hitting their marks on the earnings front. Investors may closely follow sell-side analyst estimates. It is important to remember that analyst projections are just that, projections. Following analyst expectations can provide a good glimpse into company actions, but strictly following what the analysts are saying may lead to difficulty in the future. Doing careful and extensive individual stock research may provide the investor with a more robust scope with which to successfully trade the market.

When looking to find solid stocks with smooth upward momentum, investors can take a look at the 125/250 day adjusted slope indicator. At the time of writing Granite Point Mortgage Trust Inc. (NYSE:GPMT) have a current value of 2.15279. The point of this calculation is to calculate a longer term average adjusted slope value that smooths out large stock price movements by using the average of the timeframe. This indicator is useful in helping find stocks that have been on an even upward trend over the past 6 months to a year.

Granite Point Mortgage Trust Inc. (NYSE:GPMT) of the Real Estate Investment Trusts sector closed the recent session at 18.490000 with a market value of $1014236.

Granite Point Mortgage Trust Inc. (NYSE:GPMT) has a current suggested portfolio rate of 0.07000 (as a decimal) ownership. Target weight is the volatility adjusted recommended position size for a stock in your portfolio. The maximum target weight is 7% for any given stock. The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly. The more recent volatility of a stock, the lower the target weight will be. The 3-month volatility stands at 10.993700 (decimal). This is the normal returns and standard deviation of the stock price over three months annualized.

When trading the stock market, investors constantly have to deal with volatility. There are many different reasons why markets may see increased volatility. Whether it is political change, economic events, or even natural disasters, there is always something brewing that has the ability to disrupt the market. When a big event happens, investors might be faced with challenges and be forced to react. Overreacting to market downturns may be common, but it may also hurt the health of the stock portfolio. When the stock market gets choppy and slides, investors may be tempted to quickly pull money out. Pulling out of positions based on specific events may be the right move sometimes, but investors may find that they missed out on gains that followed after a rebound. Staying disciplined and being prepared can help the investor ride out temporary market turbulence.

Debt

In looking at some Debt ratios, Granite Point Mortgage Trust Inc. (NYSE:GPMT) has a debt to equity ratio of 2.65753 and a Free Cash Flow to Debt ratio of 0.022403. This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at -0.00123. This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. Granite Point Mortgage Trust Inc.’s ND to MV current stands at 2.601368. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

In looking at some key ratios we note that the Piotroski F Score stands at 2 (1 to 10 scale) and the ERP5 rank holds steady at 18358. The Q.I. Value of Granite Point Mortgage Trust Inc. (NYSE:GPMT) currently reads 72.00000 on the Quant scale. The Free Cash Flow score of 1.380682 is also swinging some momentum at investors. The United States of America based firm is currently valued at 4807.

As any seasoned investor knows, markets can move up or down in the blink of an eye. Investors who attempt to beat the market without creating a plan may find themselves grasping at straws down the line. Building a plan that included the right level of risk may be different for every individual. Managing risk and staying on top of the stock portfolio can help investors ride out the storm when it eventually rolls in. Anybody who manages their own portfolio knows that it can be extremely challenging at times. Finding a consistent process that works when markets become volatile can be a big help to the investor. Controlling emotions and conducting the necessary research can help the investor make the difficult decisions when they crop up.

Some other notable ratios include the Accrual Ratio of 0.001361, the Altman Z score of 1.542591, a Montier C-Score of 3.00000 and a Value Composite rank of 58. Granite Point Mortgage Trust Inc. (NYSE:GPMT) has Return on Invested Capital of 0.025390, with a 5-year average of and an ROIC quality score of .  Why is ROIC important? It’s one of the most fundamental metrics in determining the value of a given stock.  It helps potential investors determine if the firm is using it’s invested capital to return profits.

Investors may be trying to gauge the current business cycle phase and how that could potentially impact the portfolio. Business cycles can be one way to analyze portfolio performance. Early on in the cycle, profits tend to grow rapidly, sales tend to improve, and activity rebounds. In the middle of a cycle, growth may be peaking, strong credit growth may still be seen, and policy may swing neutral. Toward the later stages, growth may be moderate, earnings may come under pressure, and credit may tighten. Heading into a period of recession, credit may completely dry up, profits may decline sharply, and there may be policy easing. Investors will often have to adjust portfolio holdings that reflect the current state of a business cycle.

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