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

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Annaly Capital Management (NLY) closed the most recent trading day at $7.14, moving +0.56% from the previous trading session. This change lagged the S&P 500's 2.57% gain on the day. Elsewhere, the Dow gained 2%, while the tech-heavy Nasdaq added 0.66%.

Coming into today, shares of the real estate investment trust had lost 6.33% in the past month. In that same time, the Finance sector lost 9.54%, while the S&P 500 lost 7.68%.

Investors will be hoping for strength from Annaly Capital Management as it approaches 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 should also note any recent changes to analyst estimates for Annaly Capital Management. Recent revisions tend to reflect the latest near-term business trends. 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. 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 5.54% lower within the past month. Annaly Capital Management is currently a Zacks Rank #4 (Sell).

Digging into valuation, Annaly Capital Management currently has a Forward P/E ratio of 7.34. This represents a discount compared to its industry's average Forward P/E of 8.62.

It is also worth noting that NLY currently has a PEG ratio of 1.47. 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 was holding an average PEG ratio of 1.95 at yesterday's closing price.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 227, putting it in the bottom 11% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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