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Annaly Capital Management (NLY) Gains As Market Dips: What You Should Know

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Annaly Capital Management (NLY - Free Report) closed the most recent trading day at $9.27, moving +0.43% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.95%. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 1.51%.

Prior to today's trading, shares of the real estate investment trust had gained 0.22% over the past month. This has lagged the Finance sector's gain of 2.3% and the S&P 500's gain of 4.32% in that time.

Investors will be hoping for strength from NLY as it approaches its next earnings release. The company is expected to report EPS of $0.26, down 13.33% from the prior-year quarter.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NLY is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that NLY has a Forward P/E ratio of 8.71 right now. For comparison, its industry has an average Forward P/E of 9.7, which means NLY is trading at a discount to the group.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 8% 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.

To follow NLY in the coming trading sessions, be sure to utilize Zacks.com.


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