Sectors & IndustriesFinancial ServicesMortgage Finance

Best Mortgage Stocks to Buy Now (2024)

Top mortgage stocks in 2024 ranked by overall Zen Score. See the best mortgage stocks to buy now, according to analyst forecasts for the mortgage finance industry.

According to Zen Score, the 3 best mortgage finance stocks to buy right now are:

Walker & Dunlop (NYSE:WD) is the top mortgage stock with a Zen Score of 38, which is 16 points higher than the mortgage industry average of 22. It passed 14 out of 38 due diligence checks and has average fundamentals. Walker & Dunlop has seen its stock return 54.19% over the past year, overperforming other mortgage stocks by 15 percentage points.

Walker & Dunlop has an average 1 year price target of $109.00, a downside of -1.27% from Walker & Dunlop's current stock price of $110.40.

Walker & Dunlop stock has a consensus Hold recommendation according to Wall Street analysts. Of the 3 analysts covering Walker & Dunlop, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Security National Financial (NASDAQ:SNFCA) is the second best mortgage stock with a Zen Score of 36, which is 14 points higher than the mortgage industry average of 22. It passed 14 out of 38 due diligence checks and has average fundamentals. Security National Financial has seen its stock return 24.04% over the past year, underperforming other mortgage stocks by -15 percentage points.

Mr Cooper Group (NASDAQ:COOP) is the third best mortgage stock with a Zen Score of 32, which is 10 points higher than the mortgage industry average of 22. It passed 11 out of 33 due diligence checks and has average fundamentals. Mr Cooper Group has seen its stock return 66.41% over the past year, overperforming other mortgage stocks by 27 percentage points.

Mr Cooper Group has an average 1 year price target of $99.00, an upside of 8.36% from Mr Cooper Group's current stock price of $91.36.

Mr Cooper Group stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Mr Cooper Group, 50% have issued a Strong Buy rating, 16.67% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 2 mortgage stocks that have issued dividends in the past year, the 2 mortgage stocks with the highest dividend yields are:

Greystone Housing Impact Investors (NYSE:GHI) has an annual dividend yield of 11.34%, which is 7 percentage points higher than the mortgage industry average of 4.62%. Greystone Housing Impact Investors's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Greystone Housing Impact Investors's dividend has shown consistent growth over the last 10 years.

Greystone Housing Impact Investors's dividend payout ratio of 126.1% indicates that its high dividend yield might not be sustainable for the long-term.

Walker & Dunlop (NYSE:WD) has an annual dividend yield of 2.34%, which is -2 percentage points lower than the mortgage industry average of 4.62%. Walker & Dunlop's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Walker & Dunlop's dividend has shown consistent growth over the last 10 years.

Walker & Dunlop's dividend payout ratio of 98.5% indicates that its dividend yield might not be sustainable for the long-term.

Mortgage stocks were down -0.38% in the last day, and down -4% over the last week.

We couldn't find a catalyst for why mortgage stocks are down.

Based on WallStreetZen's Valuation Score, the 3 most undervalued mortgage stocks right now are:

Security National Financial (NASDAQ:SNFCA) is the most undervalued mortgage stock based on WallStreetZen's Valuation Score. Security National Financial has a valuation score of 86, which is 62 points higher than the mortgage industry average of 24. It passed 6 out of 7 valuation due diligence checks.

Security National Financial's stock has gained 24.04% in the past year. It has underperformed other stocks in the mortgage industry by -15 percentage points.

Cnfinance Holdings (NYSE:CNF) is the second most undervalued mortgage stock based on WallStreetZen's Valuation Score. Cnfinance Holdings has a valuation score of 43, which is 19 points higher than the mortgage industry average of 24. It passed 3 out of 7 valuation due diligence checks.

Cnfinance Holdings's stock has dropped -50.56% in the past year. It has underperformed other stocks in the mortgage industry by -90 percentage points.

Pennymac Financial Services (NYSE:PFSI) is the third most undervalued mortgage stock based on WallStreetZen's Valuation Score. Pennymac Financial Services has a valuation score of 43, which is 19 points higher than the mortgage industry average of 24. It passed 3 out of 7 valuation due diligence checks.

Pennymac Financial Services's stock has gained 57.53% in the past year. It has overperformed other stocks in the mortgage industry by 18 percentage points.