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Annaly Capital Management (NLY) Gains As Market Dips: What You Should Know

In the latest trading session, Annaly Capital Management (NLY) closed at $9.95, marking a +1.22% move from the previous day. The stock outpaced the S&P 500's daily loss of 3.09%. Elsewhere, the Dow lost 2.41%, while the tech-heavy Nasdaq lost 4.43%.

Prior to today's trading, shares of the real estate investment trust had lost 4% over the past month. This has was narrower than the Finance sector's loss of 7.73% and the S&P 500's loss of 6.27% in that time.

Investors will be hoping for strength from NLY as it approaches its next earnings release, which is expected to be October 31, 2018. On that day, NLY is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 3.33%.

Any recent changes to analyst estimates for NLY should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NLY is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that NLY has a Forward P/E ratio of 8.24 right now. For comparison, its industry has an average Forward P/E of 9.17, which means NLY is trading at a discount to the group.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 69, putting it in the top 27% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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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.

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