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Annaly Capital Management (NLY) Gains But Lags Market: What You Should Know

·3 min read

In the latest trading session, Annaly Capital Management (NLY) closed at $7.09, marking a +1% move from the previous day. The stock lagged the S&P 500's daily gain of 2.14%. Meanwhile, the Dow gained 1.82%, and the Nasdaq, a tech-heavy index, lost 0.01%.

Heading into today, shares of the real estate investment trust had lost 2.36% over the past month, outpacing the Finance sector's loss of 5.3% and the S&P 500's loss of 5.01% 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, the Zacks Consensus Estimate for revenue is projecting net sales of $341 million, down 50.39% from the year-ago period.

NLY's full-year Zacks Consensus Estimates are calling for earnings of $0.97 per share and revenue of $1.43 billion. These results would represent year-over-year changes of -16.38% and -17.46%, respectively.

Investors should also note any recent changes to analyst estimates for Annaly Capital Management. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.36% lower. Annaly Capital Management is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Annaly Capital Management is holding a Forward P/E ratio of 7.26. This valuation marks a discount compared to its industry's average Forward P/E of 8.56.

Investors should also note that NLY has a PEG ratio of 1.45 right now. 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. NLY's industry had an average PEG ratio of 1.8 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 227, which puts it in the bottom 11% 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.

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


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