Two Harbors Investment Preferred Stock Buy Hold or Sell Recommendation

TWO-PB Preferred Stock  USD 23.08  0.10  0.44%   
Assuming the 90 days trading horizon and your way above-average risk tolerance, our recommendation regarding Two Harbors Investment is 'Strong Sell'. Macroaxis provides Two Harbors buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding TWO-PB positions. The advice algorithm takes into account all of Two Harbors' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Two Harbors' buy or sell advice are summarized below:
Real Value
19.05
Hype Value
23.08
Market Value
23.08
Naive Value
23.43
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Two Harbors Investment given historical horizon and risk tolerance towards Two Harbors. When Macroaxis issues a 'buy' or 'sell' recommendation for Two Harbors Investment, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Two Harbors Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Two and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Two Harbors Investment. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.

Execute Two Harbors Buy or Sell Advice

The Two recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Two Harbors Investment. Macroaxis does not own or have any residual interests in Two Harbors Investment or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Two Harbors' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Two HarborsBuy Two Harbors
Strong Sell

Market Performance

GoodDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Almost neglects market trendsDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon Two Harbors Investment has a Mean Deviation of 0.6293, Semi Deviation of 0.8546, Standard Deviation of 0.8973, Variance of 0.8051, Downside Variance of 1.21 and Semi Variance of 0.7303
Our trade recommendation module complements current analysts and expert consensus on Two Harbors Investment. It analyzes the company potential to grow using all fundamental, technical, and market related data available at the time. To make sure Two Harbors Investment is not overpriced, please validate all Two Harbors fundamentals, including its gross profit, debt to equity, beta, as well as the relationship between the cash and equivalents and cash flow from operations . Given that Two Harbors Investment has a price to earning of 8.15 X, we advise you to double-check Two Harbors Investment market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Two Harbors Trading Alerts and Improvement Suggestions

Two Harbors has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
The company has accumulated 680.51 M in total debt with debt to equity ratio (D/E) of 593.5, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Two Harbors Investment has a current ratio of 0.08, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Two Harbors until it has trouble settling it off, either with new capital or with free cash flow. So, Two Harbors' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Two Harbors Investment sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Two to invest in growth at high rates of return. When we think about Two Harbors' use of debt, we should always consider it together with cash and equity.

Two Harbors current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Two analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Two analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Two Harbors Returns Distribution Density

The distribution of Two Harbors' historical returns is an attempt to chart the uncertainty of Two Harbors' future price movements. The chart of the probability distribution of Two Harbors daily returns describes the distribution of returns around its average expected value. We use Two Harbors Investment price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Two Harbors returns is essential to provide solid investment advice for Two Harbors.
Mean Return
0.10
Value At Risk
-1.43
Potential Upside
1.56
Standard Deviation
0.90
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Two Harbors historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Two Harbors Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Two Harbors or Real Estate sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Two Harbors' price will be affected by overall preferred stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Two preferred stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.13
β
Beta against NYSE Composite-0.35
σ
Overall volatility
0.75
Ir
Information ratio -0.04

Two Harbors Volatility Alert

Two Harbors Investment has relatively low volatility with skewness of -0.84 and kurtosis of 2.78. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Two Harbors' preferred stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Two Harbors' preferred stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Two Harbors Fundamentals Vs Peers

Comparing Two Harbors' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Two Harbors' direct or indirect competition across all of the common fundamentals between Two Harbors and the related equities. This way, we can detect undervalued stocks with similar characteristics as Two Harbors or determine the preferred stocks which would be an excellent addition to an existing portfolio. Peer analysis of Two Harbors' fundamental indicators could also be used in its relative valuation, which is a method of valuing Two Harbors by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Two Harbors to competition
FundamentalsTwo HarborsPeer Average
Return On Equity0.0869-0.31
Return On Asset0.0164-0.14
Profit Margin0.53 %(1.27) %
Operating Margin0.61 %(5.51) %
Current Valuation17.02 B16.62 B
Shares Outstanding248.08 M571.82 M
Shares Owned By Institutions34.64 %39.21 %
Price To Earning8.15 X28.72 X
Price To Sales5.46 X11.42 X
Revenue295.54 M9.43 B
Gross Profit358.54 M27.38 B
EBITDA549.39 M3.9 B
Net Income220.24 M570.98 M
Cash And Equivalents790.07 M2.7 B
Cash Per Share2.89 X5.01 X
Total Debt680.51 M5.32 B
Debt To Equity593.50 %48.70 %
Current Ratio0.08 X2.16 X
Book Value Per Share5.60 X1.93 K
Cash Flow From Operations423.51 M971.22 M
Earnings Per Share0.55 X3.12 X
Number Of Employees10518.84 K
Beta1.66-0.15
Market Capitalization2.86 B19.03 B
Total Asset13.47 B29.47 B
Z Score2.48.72
Annual Yield0.09 %
Net Asset13.47 B
Last Dividend Paid0.68

Two Harbors Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Two . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Two Harbors Buy or Sell Advice

When is the right time to buy or sell Two Harbors Investment? Buying financial instruments such as Two Preferred Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Two Harbors in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Moderate Funds
Moderate Funds Theme
Funds or Etfs that combine stocks, bonds and money market instruments to get modest capital appreciation over time. The Moderate Funds theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Moderate Funds Theme or any other thematic opportunities.
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Check out Two Harbors Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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When running Two Harbors' price analysis, check to measure Two Harbors' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Two Harbors is operating at the current time. Most of Two Harbors' value examination focuses on studying past and present price action to predict the probability of Two Harbors' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Two Harbors' price. Additionally, you may evaluate how the addition of Two Harbors to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Two Harbors' value and its price as these two are different measures arrived at by different means. Investors typically determine if Two Harbors is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Two Harbors' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.