Markets

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

Annaly Capital Management (NLY) closed the most recent trading day at $8.69, moving +0.46% from the previous trading session. This change lagged the S&P 500's 0.64% gain on the day. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 0.6%.

Coming into today, shares of the real estate investment trust had 0% in the past month. In that same time, the Finance sector lost 1.45%, while the S&P 500 lost 1.87%.

NLY will be looking to display strength as it nears its next earnings release. On that day, NLY is projected to report earnings of $0.25 per share, which would represent a year-over-year decline of 16.67%.

Investors might also notice recent changes to analyst estimates for NLY. These revisions help to show the ever-changing nature of near-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. Within the past 30 days, our consensus EPS projection remained stagnant. NLY is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that NLY has a Forward P/E ratio of 8.36 right now. This represents a discount compared to its industry's average Forward P/E of 9.8.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow NLY in the coming trading sessions, be sure to utilize 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.