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Annaly Capital Management (NLY) Gains But Lags Market: What You Should Know

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In the latest trading session, Annaly Capital Management (NLY - Free Report) closed at $8.19, marking a +0.61% move from the previous day. This change lagged the S&P 500's 0.62% gain on the day. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.03%.

Coming into today, shares of the real estate investment trust had lost 3.19% in the past month. In that same time, the Finance sector lost 1.47%, while the S&P 500 gained 0.87%.

Investors will be hoping for strength from Annaly Capital Management as it approaches its next earnings release. In that report, analysts expect Annaly Capital Management to post earnings of $0.26 per share. This would mark a year-over-year decline of 13.33%. Our most recent consensus estimate is calling for quarterly revenue of $368.46 million, down 14.88% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.13 per share and revenue of $1.74 billion. These totals would mark changes of +2.73% and +30.88%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Annaly Capital Management. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Annaly Capital Management currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Annaly Capital Management has a Forward P/E ratio of 7.23 right now. This represents a discount compared to its industry's average Forward P/E of 9.07.

It is also worth noting that NLY currently has a PEG ratio of 1.45. 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. REIT and Equity Trust stocks are, on average, holding a PEG ratio of 2.45 based on yesterday's closing prices.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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