COOP - Mr. Cooper: Potential $1 Trillion Loan Portfolio At 10x Earnings
2024-02-15 11:04:32 ET
Summary
- Mr. Cooper Group Inc. could soon reach a portfolio of $1 trillion, which may attract new investors and lead to a stock price increase.
- The company's business model has shown consistent growth and offers servicing costs 38% below industry average.
- Factors such as stock repurchases, technological innovations, and a high recapture percentage contribute to the company's potential for stock price growth.
Mr. Cooper Group Inc. (COOP) delivered on February 9th better than expected quarterly EPS Normalized , and the company could soon reach a portfolio of $1 trillion. With investment analysts expecting an increase in the net income in 2024 and 2025 as well as a beneficial guidance given for 2024, COOP may see further stock price increases in the near future. In addition, I believe that the company is a buy mainly because of the current recapture percentage, future stock repurchases, and the fact that COOP offers servicing costs 38% below the industry peer average. There are obvious risks from an eventual increase in loan delinquencies, changes in the residential real estate market conditions, interest rate conditions, or the regulatory framework. With that, I believe that COOP offers more upside potential in the stock price than downside risks.
Mr. Cooper Group Could Reach A Portfolio Of $1 Trillion Soon
Mr. Cooper Group Inc. presents itself as a non-bank servicer of residential mortgage loans in the U.S. The company also runs Xome, which provides technology and data-enhanced solutions to homebuyers, real estate agents, and mortgage companies. The company’s website presents the business model with the following words....
Mr. Cooper: Potential $1 Trillion Loan Portfolio At 10x Earnings