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

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Annaly Capital Management (NLY) closed the most recent trading day at $6.65, moving +0.76% from the previous trading session. This move lagged the S&P 500's daily gain of 1.84%. At the same time, the Dow added 1.33%, and the tech-heavy Nasdaq gained 0.53%.

Prior to today's trading, shares of the real estate investment trust had lost 2.37% over the past month. This has lagged the Finance sector's gain of 0.54% and the S&P 500's loss of 0.5% in that time.

Investors will be hoping for strength from Annaly Capital Management as it approaches its next earnings release. The company is expected to report EPS of $0.25, down 16.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $315 million, down 2.43% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.98 per share and revenue of $1.49 billion, which would represent changes of -15.52% and -14.35%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Annaly Capital Management. 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. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Annaly Capital Management is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Annaly Capital Management's current valuation metrics, including its Forward P/E ratio of 6.76. Its industry sports an average Forward P/E of 8.85, so we one might conclude that Annaly Capital Management is trading at a discount comparatively.

We can also see that NLY currently has a PEG ratio of 1.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NLY's industry had an average PEG ratio of 1.87 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 171, which puts it in the bottom 33% 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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