Sectors & IndustriesReal EstateREIT - Mortgage

Best Mortgage REIT Stocks to Buy Now (2023)

Top mortgage reit stocks in 2023 ranked by overall Zen Score. See the best mortgage reit stocks to buy now, according to analyst forecasts for the reit - mortgage industry.

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

Starwood Property Trust (NYSE:STWD) is the top mortgage reit stock with a Zen Score of 41, which is 20 points higher than the mortgage reit industry average of 21. It passed 14 out of 38 due diligence checks and has strong fundamentals. Starwood Property Trust has seen its stock lose -11.88% over the past year, overperforming other mortgage reit stocks by 10 percentage points.

Starwood Property Trust has an average 1 year price target of $26.25, an upside of 22.04% from Starwood Property Trust's current stock price of $21.51.

Starwood Property Trust stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Starwood Property Trust, 75% have issued a Strong Buy rating, 25% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Ready Capital (NYSE:RC) is the second best mortgage reit stock with a Zen Score of 41, which is 20 points higher than the mortgage reit industry average of 21. It passed 14 out of 38 due diligence checks and has strong fundamentals. Ready Capital has seen its stock lose -5.01% over the past year, overperforming other mortgage reit stocks by 17 percentage points.

Ready Capital has an average 1 year price target of $13.75, an upside of 2.15% from Ready Capital's current stock price of $13.46.

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

Rithm Capital (NYSE:RITM) is the third best mortgage reit stock with a Zen Score of 38, which is 17 points higher than the mortgage reit industry average of 21. It passed 13 out of 38 due diligence checks and has average fundamentals. Rithm Capital has seen its stock lose -7.62% over the past year, overperforming other mortgage reit stocks by 14 percentage points.

Rithm Capital has an average 1 year price target of $10.80, an upside of 14.16% from Rithm Capital's current stock price of $9.46.

Rithm Capital stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Rithm Capital, 40% have issued a Strong Buy rating, 40% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 33 mortgage reit stocks that have issued dividends in the past year, the 3 mortgage reit stocks with the highest dividend yields are:

Angel Oak Mortgage (NYSE:AOMR) has an annual dividend yield of 19.93%, which is 8 percentage points higher than the mortgage reit industry average of 11.61%.

Angel Oak Mortgage's dividend payout ratio of -23.7% indicates that its high dividend yield might not be sustainable for the long-term.

Armour Residential Reit (NYSE:ARR) has an annual dividend yield of 18.69%, which is 7 percentage points higher than the mortgage reit industry average of 11.61%. Armour Residential Reit's dividend payout is not stable, having dropped more than 10% eight times in the last 10 years. Armour Residential Reit's dividend has not shown consistent growth over the last 10 years.

Armour Residential Reit's dividend payout ratio of -42.6% indicates that its high dividend yield might not be sustainable for the long-term.

Broadmark Realty Capital (NYSE:BRMK) has an annual dividend yield of 16.33%, which is 5 percentage points higher than the mortgage reit industry average of 11.61%.

Broadmark Realty Capital's dividend payout ratio of 186.7% indicates that its high dividend yield might not be sustainable for the long-term.

Mortgage reit stocks were down -0.75% in the last day, and up 2.36% over the last week.

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

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

Broadmark Realty Capital (NYSE:BRMK) is the most undervalued mortgage reit stock based on WallStreetZen's Valuation Score. Broadmark Realty Capital has a valuation score of 57, which is 38 points higher than the mortgage reit industry average of 19. It passed 4 out of 7 valuation due diligence checks.

Broadmark Realty Capital's stock has dropped -50.93% in the past year. It has underperformed other stocks in the mortgage reit industry by -29 percentage points.

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

Cherry Hill Mortgage Investment's stock has dropped -9.92% in the past year. It has overperformed other stocks in the mortgage reit industry by 12 percentage points.

New York Mortgage Trust (NASDAQ:NYMT) is the third most undervalued mortgage reit stock based on WallStreetZen's Valuation Score. New York Mortgage Trust has a valuation score of 43, which is 24 points higher than the mortgage reit industry average of 19. It passed 3 out of 7 valuation due diligence checks.

New York Mortgage Trust's stock has dropped -13.66% in the past year. It has overperformed other stocks in the mortgage reit industry by 8 percentage points.