Back to top

Image: Bigstock

AGNC Investment (AGNC) Laps the Stock Market: Here's Why

Read MoreHide Full Article

AGNC Investment (AGNC - Free Report) closed the most recent trading day at $9.82, moving +0.82% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.32%. Elsewhere, the Dow saw an upswing of 0.68%, while the tech-heavy Nasdaq appreciated by 0.2%.

The real estate investment trust's stock has climbed by 2.74% in the past month, falling short of the Finance sector's gain of 4.23% and the S&P 500's gain of 5.11%.

Investors will be eagerly watching for the performance of AGNC Investment in its upcoming earnings disclosure. On that day, AGNC Investment is projected to report earnings of $0.53 per share, which would represent a year-over-year decline of 24.29%. At the same time, our most recent consensus estimate is projecting a revenue of $360.85 million, reflecting a 468.21% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.09 per share and a revenue of $1.44 billion, representing changes of -19.92% and +686.15%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for AGNC Investment. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. AGNC Investment is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, AGNC Investment is presently trading at a Forward P/E ratio of 4.65. This indicates a discount in contrast to its industry's Forward P/E of 7.74.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AGNC Investment Corp. (AGNC) - free report >>

Published in