Annaly Capital Management (NLY) Outpaces Stock Market Gains: What You Should Know

·3 min read

Annaly Capital Management (NLY) closed at $6.20 in the latest trading session, marking a +1.97% move from the prior day. This move outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 0.48%.

Coming into today, shares of the real estate investment trust had lost 8.02% in the past month. In that same time, the Finance sector lost 7.94%, while the S&P 500 lost 6.79%.

Wall Street will be looking for positivity from Annaly Capital Management as it approaches its next earnings report date. On that day, Annaly Capital Management is projected to report earnings of $0.25 per share, which would represent a year-over-year decline of 16.67%. Our most recent consensus estimate is calling for quarterly revenue of $322 million, down 0.27% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.97 per share and revenue of $1.53 billion. These totals would mark changes of -16.38% and -11.81%, respectively, from last year.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. The Zacks Consensus EPS estimate has moved 0.68% lower within the past month. Annaly Capital Management is currently a Zacks Rank #3 (Hold).

Investors should also note Annaly Capital Management's current valuation metrics, including its Forward P/E ratio of 6.27. This represents a discount compared to its industry's average Forward P/E of 8.25.

Also, we should mention that NLY has a PEG ratio of 1.25. 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. REIT and Equity Trust stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 141, putting it in the bottom 45% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Annaly Capital Management Inc (NLY) : Free Stock Analysis Report
To read this article on click here.