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

·3 min read

Annaly Capital Management (NLY) closed the most recent trading day at $7.32, moving +0.69% from the previous trading session. This move lagged the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.14%.

Coming into today, shares of the real estate investment trust had gained 3.56% in the past month. In that same time, the Finance sector gained 1.76%, while the S&P 500 gained 3.76%.

Annaly Capital Management will be looking to display strength as it nears its next earnings release. On that day, Annaly Capital Management is projected to report earnings of $0.24 per share, which would represent 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.

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 might also notice recent changes to analyst estimates for Annaly Capital Management. These recent revisions tend to reflect the evolving nature of short-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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Annaly Capital Management is currently a Zacks Rank #4 (Sell).

In terms of valuation, Annaly Capital Management is currently trading at a Forward P/E ratio of 7.52. Its industry sports an average Forward P/E of 9.05, so we one might conclude that Annaly Capital Management is trading at a discount comparatively.

Meanwhile, NLY's PEG ratio is currently 1.5. 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 industry currently had an average PEG ratio of 1.84 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 215, which puts it in the bottom 16% 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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