10 High Risk High Reward Growth Stocks Stocks To Buy

7. New York Community Bancorp, Inc. (NYSE:NYCB)

Number of Hedge Fund Holders In Q2 2024: 30

New York Community Bancorp, Inc. (NYSE:NYCB) is one of the most notable banking stories of 2024. Its stock is down by a whopping 65% year to date after a disastrous Q4 2023 earnings report and a subsequent bond ratings downgrade. The Q4 results saw New York Community Bancorp, Inc. (NYSE:NYCB) post a surprise $0.27 loss per share which was a complete 180 degree from analyst estimates of $0.26 in EPS. The bank blamed this on $185 million of charge offs related to the commercial real estate sector which has been in a constant state of turmoil since the pandemic as well as $552 million in additions to loan loss provisions. New York Community Bancorp, Inc. (NYSE:NYCB)’s faced another headwind in February when Moody’s downgraded all of its bond ratings to Ba2 which is junk bond status. Naturally, investors weren’t pleased, Looking ahead, New York Community Bancorp, Inc. (NYSE:NYCB)  is expected to be unprofitable in 2024 and post a small profit in 2025. Any further downsides could further batter the stock, while a beat could see significant tailwinds.

Gator Capital Management shared another key aspect of New York Community Bancorp, Inc. (NYSE:NYCB)’s performance during its Q1 2024 investor letter:

“We believe NYCB’s issues are idiosyncratic to NYCB. NYCB has long been a New York City apartment lender. Their track record over many decades has been spectacular with near zero losses. But, in 2019, NYC passed a law that limited how much landlords could raise rents. In the current inflationary environment, landlords’ costs are rising, but they can’t raise rents, so investors are concerned that landlords will get squeezed so much that they will default on their loans”