5 Value Arbitrage Stocks Sabrepoint Capital is Buying

3. Walker & Dunlop Inc. (NYSE:WD)

Sabrepoint Capital made a small 5,000-share addition to its Walker & Dunlop Inc. (NYSE:WD) holding during Q3, giving it an even 200,000 WD shares on September 30. The fund was one of 16 long WD at that time, down from 25 at the end of 2019.

Walker & Dunlop Inc. (NYSE:WD), which provides financial services to the real estate industry, is one of the largest lenders to the commercial real estate market in the U.S, having grown its total lending volume to $24.7 billion as of 2020, representing a 25% annual increase over the previous decade. Walker & Dunlop hit EPS of $2.21 during the third quarter, growing net income by 35% year-over-year,  and could grow earnings by greater than 50% annually over the next decade as CRE maturities are set to triple during that time.