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Annaly Capital Management (NLY) Flat As Market Sinks: What You Should Know

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Zacks Equity Research
·3 min read
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In the latest trading session, Annaly Capital Management (NLY) closed at $8.36, marking no change from the previous day. This change was narrower than the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq gained 0.09%.

Coming into today, shares of the real estate investment trust had lost 0.95% in the past month. In that same time, the Finance sector gained 5.52%, while the S&P 500 gained 4.43%.

Wall Street will be looking for positivity from NLY as it approaches its next earnings report date. The company is expected to report EPS of $0.30, up 15.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $420.96 million, down 7.31% from the year-ago period.

It is also important to note the recent changes to analyst estimates for NLY. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. NLY is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, NLY is holding a Forward P/E ratio of 7.78. Its industry sports an average Forward P/E of 9.66, so we one might conclude that NLY is trading at a discount comparatively.

Investors should also note that NLY has a PEG ratio of 1.56 right now. 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. The REIT and Equity Trust was holding an average PEG ratio of 4.1 at yesterday's closing price.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 131, which puts it in the bottom 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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