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Is Annaly Capital Management (NLY) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Annaly Capital Management (NLY - Free Report) . NLY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.01, which compares to its industry's average of 9.28. Over the past 52 weeks, NLY's Forward P/E has been as high as 10.33 and as low as 8.12, with a median of 9.14.

Another notable valuation metric for NLY is its P/B ratio of 1.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.21. Within the past 52 weeks, NLY's P/B has been as high as 1.19 and as low as 0.88, with a median of 1.

Finally, our model also underscores that NLY has a P/CF ratio of 3.29. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. NLY's P/CF compares to its industry's average P/CF of 5.18. Over the past 52 weeks, NLY's P/CF has been as high as 5.56 and as low as 3.20, with a median of 3.70.

These are just a handful of the figures considered in Annaly Capital Management's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NLY is an impressive value stock right now.


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