A number of stocks jumped in the afternoon session after the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Mortgage REIT PennyMac Mortgage Investment Trust (NYSE:PMT) missed Wall Street’s revenue expectations in Q2 CY2025, with sales falling 1.4% year on year to $70.2 million. Its non-GAAP loss of $0.04 per share was significantly below analysts’ consensus estimates.
Looking back on thrifts & mortgage finance stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including PennyMac Mortgage Investment Trust (NYSE:PMT) and its peers.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
Mortgage REIT PennyMac Mortgage Investment Trust (NYSE:PMT) fell short of the market’s revenue expectations in Q1 CY2025, with sales falling 40.1% year on year to $44.47 million. Its non-GAAP loss of $0.01 per share was significantly below analysts’ consensus estimates.
