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Annaly Capital Management (NLY) Dips More Than Broader Markets: What You Should Know

·3-min read

Annaly Capital Management (NLY) closed at $7.82 in the latest trading session, marking a -1.64% move from the prior day. This change lagged the S&P 500's daily loss of 0.26%. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq lost 0.04%.

Prior to today's trading, shares of the real estate investment trust had lost 3.17% over the past month. This has lagged the Finance sector's gain of 4.39% and the S&P 500's gain of 4.82% in that time.

Annaly Capital Management will be looking to display strength as it nears its next earnings release. On that day, Annaly Capital Management is projected to report earnings of $0.26 per share, which would represent a year-over-year decline of 13.33%. Our most recent consensus estimate is calling for quarterly revenue of $368.46 million, down 14.88% from the year-ago period.

NLY's full-year Zacks Consensus Estimates are calling for earnings of $1.13 per share and revenue of $1.74 billion. These results would represent year-over-year changes of +2.73% and +30.88%, respectively.

It is also important to note the recent changes to analyst estimates for Annaly Capital Management. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Annaly Capital Management is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Annaly Capital Management is holding a Forward P/E ratio of 7.02. Its industry sports an average Forward P/E of 9.06, so we one might conclude that Annaly Capital Management is trading at a discount comparatively.

It is also worth noting that NLY currently has a PEG ratio of 1.4. 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. The REIT and Equity Trust industry currently had an average PEG ratio of 2.45 as of yesterday's close.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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


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