Finance Of America Companies Inc. (NYSE:FOA) has had a rough last few months as earnings and forward guidance came in much lower than the market expected. This has opened up a potential opportunity for investors in a cyclical market protected
A Bounce Coming For Finance Of America
Summary
- An exaggerated rout in mortgage originations caused an overdone selloff in the stock.
- The diversified nature of the business creates some protection from cyclicality as the housing market roils.
- The drop in forward guidance numbers does not accurately reflect why the stock has been eviscerated, thus creating potential upside if the mortgage market is bottoming out.
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