Why Shares of Axos Financial Are Going Up Today
Shares of Axos Financial (NYSE: AX) were trading sharply higher on Thursday, after the company reported better-than-expected earnings for the third quarter of fiscal 2020. In early trading, shares were up 13%. As of 12:30 p.m. EDT today, they were still up around 7%.
With bank stocks, investors need to keep an eye on net interest margin (NIM), a metric where Axos has traditionally excelled. This is the revenue generated from the difference between the rates at which a bank lends money and that at which it borrows. When the Federal Reserve dropped interest rates to near zero earlier this year, the assumption was Axos' NIM would fall.
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Source Fool.com
