4-Star Stocks Poised to Pop: MFA Financial
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT MFA Financial (NYS: MFA) has earned a respected four-star ranking.
With that in mind, let's take a closer look at MFA's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||New York (1997)|
|Market Cap||$2.7 billion|
|Trailing-12-Month Revenue||$329.5 million|
Chairman/CEO Stewart Zimmerman (since 1997)
CFO Stephen Yarad (since 2010)
|Return on Equity (Average, Past 3 Years)||13.6%|
|Cash/Debt||$565.1 million / $9.1 billion|
Annaly Capital Management (NYS: NLY)
Capstead Mortgage (NYS: CMO)
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 90% of the 323 members who have rated MFA believe the stock will outperform the S&P 500 going forward. These bulls include giannelli5 and All-Star TSIF, who is ranked in the top 0.1% of our community.
Earlier this month, giannelli5 listed a few of MFA's positives: "Fantastic dividend; bought near low; excellent growth potential."
Over the past three years, in fact, MFA has grown its top line at a breakneck rate of 70% annually. That's much faster than industry peers like Annaly (35%), Capstead (16%), and Anworth Mortgage (NYS: ANH) (48%).
CAPS All-Star TSIF expands on the opportunity:
Mortgage REIT's certainly have risk along with the rest of the equities. Overall, however, I believe the current environment for those backed by Fannie/Freddie and with a decent leverage ratio have a good chance of outperforming. This is assuming the dividend has some stability, which I believe it does. ...
There is a variety among these mREIT's depending on leverage, agency, non-agency etc. Here on CAPS, I'm averaging down, expecting the dividends to remain intact and over a long period of time dividend reinvestment to beat the S&P. During a boom cycle, such as the recovery from March 2009 to April 2011 it's hard for a dividend payer to beat the S&P. I expect the next year to be marked by much more constrained equity growth.
What do you think about MFA, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track MFA?Add it to your watchlist.
At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Annaly. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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