Fannie Mae: Seventh session of gains; stock hovers near August highs
Mike SP
Fannie Mae (OTCQB:FNMA) shares were eyeing gains for their seventh straight session of advances on Friday, jumping about 20% during that seven-day streak.
U.S. mortgage finance giant rose 12.73% to $0.85 by 1432 ET, hovering near its August highs. Overall, shares have climbed about 88.43% since the start of the year, outpacing the S&P 500 that gained about 24.13% during that period.
Looking at Seeking Alpha's Quant Rating, FNMA has a Strong Buy rating with an impressive score of 4.95 out of 5. The company receives an A+ on profitability and momentum, along with an A on valuations.
However, two Wall Street analysts surveyed in the last 90 days have rated the stock a Hold and a Sell.
SA Analyst Chance Tacia in a July article maintained a Buy rating on Fannie Mae and Freddie Mac (OTCQB:FMCC) common and preferred shares.
"Fannie Mae is a highly speculative and risky investment, but it also offers huge upside potential for investors who are willing to take a longshot bet on housing reform," the analyst said.
Up until Christmas, FNMA saw 10 sessions in green and five in red in December.