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AGNC Investment (AGNC) Gains But Lags Market: What You Should Know

Zacks Equity Research

In the latest trading session, AGNC Investment (AGNC) closed at $17.72, marking a +0.06% move from the previous day. The stock lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.34%, and the Nasdaq, a tech-heavy index, added 0.23%.

Coming into today, shares of the real estate investment trust had gained 2.73% in the past month. In that same time, the Finance sector gained 3.15%, while the S&P 500 gained 3.81%.

AGNC will be looking to display strength as it nears its next earnings release. On that day, AGNC is projected to report earnings of $0.52 per share, which would represent a year-over-year decline of 1.89%.

Any recent changes to analyst estimates for AGNC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AGNC is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, AGNC currently has a Forward P/E ratio of 8.41. This represents a discount compared to its industry's average Forward P/E of 10.14.

We can also see that AGNC currently has a PEG ratio of 2.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AGNC's industry had an average PEG ratio of 2.83 as of yesterday's close.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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