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Annaly Capital Management (NLY) Dips More Than Broader Markets: What You Should Know

·3 min read

In the latest trading session, Annaly Capital Management (NLY) closed at $7.12, marking a -1.52% move from the previous day. This change lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Prior to today's trading, shares of the real estate investment trust had gained 1.69% over the past month. This has outpaced the Finance sector's gain of 0.47% and lagged the S&P 500's gain of 2.67% in that time.

Investors will be hoping for strength from Annaly Capital Management as it approaches its next earnings release. In that report, analysts expect Annaly Capital Management to post earnings of $0.24 per share. This would mark a year-over-year decline of 17.24%. Meanwhile, our latest consensus estimate is calling for revenue of $341 million, down 50.39% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.97 per share and revenue of $1.43 billion, which would represent changes of -16.38% and -17.46%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Annaly Capital Management. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Annaly Capital Management is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Annaly Capital Management currently has a Forward P/E ratio of 7.48. Its industry sports an average Forward P/E of 8.69, so we one might conclude that Annaly Capital Management is trading at a discount comparatively.

Also, we should mention that NLY has a PEG ratio of 1.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. REIT and Equity Trust stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NLY in the coming trading sessions, be sure to utilize Zacks.com.


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