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AGNC Investment Repositions Portfolio: Should You Hold?

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On Dec 27, 2016, we issued an updated research report on AGNC Investment Corp. (AGNC - Free Report) . The Bethesda, MD-based REIT-Mortgage Trust (“mREIT”) focuses on leveraged investments in agency mortgage-backed securities.

The company’s acquisition of American Capital Management, LLC has been an important step as it turned the company into the largest internally-managed residential mREIT in the country. This transaction has substantially lowered operating costs, providing long-term benefits to the shareholders.

Further, the company makes efforts to reposition its portfolio in order to neutralize the risks related to interest rates and prepayment uncertainty. The company follows an active portfolio management policy that includes re-evaluation and adjustment of its portfolio, as well as hedges amid a varying interest rate and mortgage market environment.

Year to date, AGNC Investment’s shares underperformed the Zacks categorized REIT-Mortgage Trust industry. Over that time period, the company’s shares moved up 4.7%, while the industry gained 11%.  The widespread volatility in the market, as well as concerns over global economies acted as dampeners. Considering the current environment, we expect the volatility to continue, rendering the stock price susceptible to fluctuations.


AGNC Investment currently carries a Zacks Rank # 2 (Buy).

Some other favorably ranked stocks in the real estate space include Cherry Hill Mortgage Investment Corporation (CHMI - Free Report) , Seritage Growth Properties (SRG - Free Report) and DCT Industrial Trust Inc. . All these stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Cherry Hill Mortgage Investment’s current-year estimates have moved up 5% to $2.10 per share, over the past 60 days.

Seritage Growths’ current-year estimates have moved up 0.9% to $2.34 per share, over the past 60 days.

DCT Industrial Trust’s current-year estimates have moved up 2.3%, over the past 60 days to $2.24 per share.

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