AGNC Investment Repositions Portfolio: Should You Hold?

On Dec 27, 2016, we issued an updated research report on AGNC Investment Corp.AGNC . The Bethesda, MD-based REIT-Mortgage Trust ("mREIT") focuses on leveraged investments in agency mortgage-backed securities.

The company's acquisition of American Capital Management, LLC has been an important step as it turned the company into the largest internally-managed residential mREIT in the country. This transaction has substantially lowered operating costs, providing long-term benefits to the shareholders.

Further, the company makes efforts to reposition its portfolio in order to neutralize the risks related to interest rates and prepayment uncertainty. The company follows an active portfolio management policy that includes re-evaluation and adjustment of its portfolio, as well as hedges amid a varying interest rate and mortgage market environment.

Year to date, AGNC Investment's shares underperformed the Zacks categorized REIT-Mortgage Trust industry. Over that time period, the company's shares moved up 4.7%, while the industry gained 11%. The widespread volatility in the market, as well as concerns over global economies acted as dampeners. Considering the current environment, we expect the volatility to continue, rendering the stock price susceptible to fluctuations.

AGNC Investment currently carries a Zacks Rank # 2 (Buy).

Some other favorably ranked stocks in the real estate space include Cherry Hill Mortgage Investment Corporation CHMI , Seritage Growth Properties SRG and DCT Industrial Trust Inc. DCT . All these stocks carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .

Cherry Hill Mortgage Investment's current-year estimates have moved up 5% to $2.10 per share, over the past 60 days.

Seritage Growths' current-year estimates have moved up 0.9% to $2.34 per share, over the past 60 days.

DCT Industrial Trust's current-year estimates have moved up 2.3%, over the past 60 days to $2.24 per share.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?

Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>

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

AGNC INVESTMENT (AGNC): Free Stock Analysis Report

DCT INDUSTRIAL (DCT): Free Stock Analysis Report

CHERRY HILL MTG (CHMI): Free Stock Analysis Report

SERITAGE GROWTH (SRG): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More