A key level of resistance has formed in the chart of TPG RE Finance Trust Inc. (TRTX). If that level is broken, a breakout could occur.
TRTX is a commercial real estate finance company. It originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments.
The company has a portfolio of commercial mortgage loans worth an aggregate total of $5.5 billion. TRTX saw big losses in Q1 due to the pandemic, but has since recovered, with revenues in Q3 up 9% year-over-year. As a REIT, it currently has a dividend yield of 7.5%.
As of the end of the last quarter, the company had $225.6 million in cash. Its revenues are expected to be down 1.5% year over year this quarter, while earnings are estimated to be down 31.8%. Next quarter though, EPS is expected to rise 111.8%. The stock is undervalued with a trailing P/E of 11.24.
The stock has shown bearish long-term momentum, but flat near-term performance. This has led to a “Neutral” rating in our POWR Ratings system.
Take a look at the 1-year chart of TRTX below with my added notations:
Chart of TRTX provided by TradingView
During the past eight months, TRTX has formed a key level of resistance around the $11 (red) mark. The stock has tested that level multiple times since its April bottom, and it is currently sitting under that level again. A solid close above $11 should lead to higher prices for TRTX.
A long trade could be entered on a breakthrough of the $11 resistance level.
Want to Discover More Great Trades?
I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.
That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!
Have a good trading day!
Christian Tharp, CMT
TRTX shares were unchanged in premarket trading Wednesday. Year-to-date, TRTX has gained 0.28%, versus a 1.86% rise in the benchmark S&P 500 index during the same period.
About the Author: christian
Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...
More Resources for the Stocks in this Article
|Ticker||POWR Rating||Industry Rank||Rank in Industry|
|TRTX||Get Rating||Get Rating||Get Rating|