In the latest trading session, Annaly Capital Management (NLY) closed at $7.94, marking a -0.63% move from the previous day. This change lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.
Heading into today, shares of the real estate investment trust had gained 0.13% over the past month, lagging the Finance sector's gain of 5.21% and the S&P 500's gain of 0.64% in that time.
Annaly Capital Management will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.26, down 13.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $357 million, down 17.53% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Annaly Capital Management. Recent revisions tend to reflect the latest 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. The Zacks Consensus EPS estimate has moved 1.14% lower within the past month. Annaly Capital Management is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Annaly Capital Management is currently trading at a Forward P/E ratio of 7.84. This represents a discount compared to its industry's average Forward P/E of 8.88.
Investors should also note that NLY has a PEG ratio of 1.57 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NLY's industry had an average PEG ratio of 2.23 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 109, which puts it in the top 43% 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.
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