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Annaly Capital Management (NLY) Gains As Market Dips: 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 $8.31, marking a +1.22% move from the previous day. This move outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 0.12%.

Coming into today, shares of the real estate investment trust had lost 1.91% in the past month. In that same time, the Finance sector gained 6.57%, while the S&P 500 gained 4.12%.

NLY will be looking to display strength as it nears its next earnings release. In that report, analysts expect NLY to post earnings of $0.30 per share. This would mark year-over-year growth of 15.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $420.96 million, down 7.31% from the year-ago period.

Investors might also notice recent changes to analyst estimates for NLY. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. NLY currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that NLY has a Forward P/E ratio of 7.64 right now. For comparison, its industry has an average Forward P/E of 9.5, which means NLY is trading at a discount to the group.

Investors should also note that NLY has a PEG ratio of 1.53 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. The REIT and Equity Trust industry currently had an average PEG ratio of 4.04 as of yesterday's close.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 25% 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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