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

Zacks Equity Research

Annaly Capital Management (NLY) closed the most recent trading day at $7.05, moving +1.29% from the previous trading session. This move lagged the S&P 500's daily gain of 1.9%. Meanwhile, the Dow gained 2.05%, and the Nasdaq, a tech-heavy index, added 1.75%.

Investors will be hoping for strength from NLY as it approaches its next earnings release. On that day, NLY is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 8%.

Any recent changes to analyst estimates for NLY should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 9.02% higher within the past month. NLY is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, NLY currently has a Forward P/E ratio of 7.85. This valuation marks a discount compared to its industry's average Forward P/E of 8.92.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 43% 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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