PMI Gets 'Sell' Ranking From Zacks

The PMI Group Inc., Walnut Creek, Calif., has been given a rank of 4(Sell) by Zacks.com, the online unit of Zacks Investment Research Inc., Chicago.Stocks with this ranking should be sold or avoided for the next one to three months, Zacks said. In its comments about the mortgage insurer, Zacks noted that earnings estimates for this year and next are down 62 cents and 34 cents, respectively, from where they were at the end of May. In its results for the second quarter, PMI did not take any impairment related to the beleaguered Fairbanks Capital Corp., but the company did not rule out any future action. (PMI owns 57% of Fairbanks, a subprime mortgage servicer based in Salt Lake City that is under federal investigation for its servicing practices.) On the other hand, PMI is the largest stakeholder in the investor group buying Financial Guaranty Insurance Corp. from GE Capital. "As conditions improve, so too should PMI Group's results and earnings estimates," Zacks said. "For right now, though, it might be best to sit tight on a position in PMI Group until its earnings estimates gain more upside mobility." Zacks can be found online at http://www.zacks.com.