Annaly Capital Management (NLY) Laps the Stock Market: Here's Why
In the latest trading session, Annaly Capital Management (NLY) closed at $19.42, marking a +1.09% move from the previous day. This change outpaced the S&P 500's 0.51% gain on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.58%.
Shares of the real estate investment trust witnessed a gain of 1.59% over the previous month, trailing the performance of the Finance sector with its gain of 4.57% and the S&P 500's gain of 2.94%.
The investment community will be closely monitoring the performance of Annaly Capital Management in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.65, reflecting a 19.75% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $320 million, indicating a 1544.4% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.62 per share and revenue of $1.29 billion, which would represent changes of -8.39% and +1259.05%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Annaly Capital Management. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.51% lower. Currently, Annaly Capital Management is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Annaly Capital Management is presently being traded at a Forward P/E ratio of 7.32. Its industry sports an average Forward P/E of 7.41, so one might conclude that Annaly Capital Management is trading at a discount comparatively.
The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Annaly Capital Management Inc (NLY) : Free Stock Analysis Report
