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

In the latest trading session, Annaly Capital Management (NLY) closed at $10, marking a +0.6% move from the previous day. This change lagged the S&P 500's 2.15% gain on the day. Meanwhile, the Dow gained 2.17%, and the Nasdaq, a tech-heavy index, added 2.89%.

Heading into today, shares of the real estate investment trust had lost 3.02% over the past month, outpacing the Finance sector's loss of 4.98% and the S&P 500's loss of 5.16% in that time.

Investors will be hoping for strength from NLY as it approaches its next earnings release, which is expected to be November 7, 2018. In that report, analysts expect NLY to post earnings of $0.29 per share. This would mark a year-over-year decline of 3.33%.

Investors should also note any recent changes to analyst estimates for NLY. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% higher. NLY is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note NLY's current valuation metrics, including its Forward P/E ratio of 8.33. This represents a discount compared to its industry's average Forward P/E of 8.96.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 42% 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.

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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