Annaly Capital Management (NLY) Laps the Stock Market: Here's Why

Annaly Capital Management (NLY) Laps the Stock Market: Here's Why

Annaly Capital Management (NLY) Laps the Stock Market: Here's Why · Zacks
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In the latest trading session, Annaly Capital Management (NLY) closed at $19.42, marking a +1.09% move from the previous day. This change outpaced the S&P 500's 0.51% gain on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.58%.

Shares of the real estate investment trust witnessed a gain of 1.59% over the previous month, trailing the performance of the Finance sector with its gain of 4.57% and the S&P 500's gain of 2.94%.

The investment community will be closely monitoring the performance of Annaly Capital Management in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.65, reflecting a 19.75% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $320 million, indicating a 1544.4% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.62 per share and revenue of $1.29 billion, which would represent changes of -8.39% and +1259.05%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Annaly Capital Management. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.51% lower. Currently, Annaly Capital Management is carrying a Zacks Rank of #4 (Sell).

In terms of valuation, Annaly Capital Management is presently being traded at a Forward P/E ratio of 7.32. Its industry sports an average Forward P/E of 7.41, so one might conclude that Annaly Capital Management is trading at a discount comparatively.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 31% of all 250+ industries.