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Is Annaly Capital Management (NLY) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Annaly Capital Management (NLY - Free Report) . NLY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.34. This compares to its industry's average Forward P/E of 8.94. Over the past year, NLY's Forward P/E has been as high as 8.53 and as low as 5.71, with a median of 7.26.
NLY is also sporting a PEG ratio of 1.27. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NLY's PEG compares to its industry's average PEG of 1.80. NLY's PEG has been as high as 1.70 and as low as 1.14, with a median of 1.40, all within the past year.
Another valuation metric that we should highlight is NLY's P/B ratio of 1.10. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.46. NLY's P/B has been as high as 1.17 and as low as 0.81, with a median of 0.99, over the past year.
Finally, our model also underscores that NLY has a P/CF ratio of 4.12. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.05. NLY's P/CF has been as high as 5.42 and as low as 2.85, with a median of 3.48, all within the past year.
Investors could also keep in mind Western Asset Mortgage Capital , an REIT and Equity Trust stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Western Asset Mortgage Capital also has a P/B ratio of 0.58 compared to its industry's price-to-book ratio of 1.46. Over the past year, its P/B ratio has been as high as 0.80, as low as 0.43, with a median of 0.59.
Value investors will likely look at more than just these metrics, but the above data helps show that Annaly Capital Management and Western Asset Mortgage Capital are likely undervalued currently. And when considering the strength of its earnings outlook, NLY and WMC sticks out as one of the market's strongest value stocks.
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Is Annaly Capital Management (NLY) Stock Undervalued Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Annaly Capital Management (NLY - Free Report) . NLY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.34. This compares to its industry's average Forward P/E of 8.94. Over the past year, NLY's Forward P/E has been as high as 8.53 and as low as 5.71, with a median of 7.26.
NLY is also sporting a PEG ratio of 1.27. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NLY's PEG compares to its industry's average PEG of 1.80. NLY's PEG has been as high as 1.70 and as low as 1.14, with a median of 1.40, all within the past year.
Another valuation metric that we should highlight is NLY's P/B ratio of 1.10. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.46. NLY's P/B has been as high as 1.17 and as low as 0.81, with a median of 0.99, over the past year.
Finally, our model also underscores that NLY has a P/CF ratio of 4.12. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.05. NLY's P/CF has been as high as 5.42 and as low as 2.85, with a median of 3.48, all within the past year.
Investors could also keep in mind Western Asset Mortgage Capital , an REIT and Equity Trust stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Western Asset Mortgage Capital also has a P/B ratio of 0.58 compared to its industry's price-to-book ratio of 1.46. Over the past year, its P/B ratio has been as high as 0.80, as low as 0.43, with a median of 0.59.
Value investors will likely look at more than just these metrics, but the above data helps show that Annaly Capital Management and Western Asset Mortgage Capital are likely undervalued currently. And when considering the strength of its earnings outlook, NLY and WMC sticks out as one of the market's strongest value stocks.