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mREITs' Q3 Earnings to Watch on Nov 2: NLY, STWD & More
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The real estate investment trusts (“REITs”) sector’s third-quarter earnings have almost completed two weeks. Many companies from different categories of REITs such as the equity, retail, apartment and mortgage have come out with the September-quarter end releases.
One important mortgage REITs (“mREITs”) – a variant category of the commonplace REITs – which reported its third-quarter results on Oct 24 was AGNC Investment Corp. (AGNC - Free Report) . The company reported a positive earnings surprise of 16.4%.
Some mREITs which are slated to report their third-quarter 2016 results on Nov 2 are Annaly Capital Management, Inc. (NLY - Free Report) , Starwood Property Trust, Inc. (STWD - Free Report) , MFA Financial, Inc. (MFA - Free Report) , New Residential Investment Corp. and Two Harbors Investment Corp. (TWO - Free Report) .
mREITs borrow money at a low rate of interest, and in turn use it to purchase mortgage backed securities (“MBSs”). So, a low interest rate environment serves as a boon for the mREIT industry. During the quarter, though the rate of interest was not raised, the chances of a rate hike kept the mREIT industry on tenterhooks.
Now let’s take a look at what’s in store for these mREITs which are slated to report tomorrow.
For doing this, we rely on the Zacks methodology, combining a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) – and a positive Earnings ESP, to predict the chances of a beat this quarter. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Per our proprietary methodology, Earnings ESP shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Research shows that with this combination of rank and ESP, chances of a positive earnings surprise are as high as 70% for the stocks.
Annaly is an mREIT that primarily owns, manages and finances a portfolio of real estate related investment securities. Our model does not conclusively predict that the company will record a positive surprise. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Greenwich, CT-based Starwood Property Trust is engaged in originating, investing, financing and managing commercial mortgage loans and other commercial real estate-related debt investments. Presently, the company has an Earnings ESP of 0.00% and a Zacks Rank #3. Our model does not conclusively predict that the company will record a positive surprise.
MFA Financial is a New York-based mREIT, which is engaged in the business of investing in MBSs. Our proven model shows that MFA Financial is likely to beat estimates because it has an Earnings ESP of +5.00% and a Zacks Rank #2.
New York-based New Residential Investment Corp. is mainly engaged in investing and managing investments related to residential real estate. The company has an Earnings ESP of -2.04% and a Zacks Rank #3. Our model does not conclusively predict that the company will record a positive surprise.
New York-based Two Harbors Investment Corp. primarily invests in and manages residential MBSs and mortgage loans. The company has an Earnings ESP of -8.70% and a Zacks Rank #2. Our model does not conclusively predict that the company will record a positive surprise.
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mREITs' Q3 Earnings to Watch on Nov 2: NLY, STWD & More
The real estate investment trusts (“REITs”) sector’s third-quarter earnings have almost completed two weeks. Many companies from different categories of REITs such as the equity, retail, apartment and mortgage have come out with the September-quarter end releases.
One important mortgage REITs (“mREITs”) – a variant category of the commonplace REITs – which reported its third-quarter results on Oct 24 was AGNC Investment Corp. (AGNC - Free Report) . The company reported a positive earnings surprise of 16.4%.
Some mREITs which are slated to report their third-quarter 2016 results on Nov 2 are Annaly Capital Management, Inc. (NLY - Free Report) , Starwood Property Trust, Inc. (STWD - Free Report) , MFA Financial, Inc. (MFA - Free Report) , New Residential Investment Corp. and Two Harbors Investment Corp. (TWO - Free Report) .
mREITs borrow money at a low rate of interest, and in turn use it to purchase mortgage backed securities (“MBSs”). So, a low interest rate environment serves as a boon for the mREIT industry. During the quarter, though the rate of interest was not raised, the chances of a rate hike kept the mREIT industry on tenterhooks.
Now let’s take a look at what’s in store for these mREITs which are slated to report tomorrow.
For doing this, we rely on the Zacks methodology, combining a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) – and a positive Earnings ESP, to predict the chances of a beat this quarter. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Per our proprietary methodology, Earnings ESP shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Research shows that with this combination of rank and ESP, chances of a positive earnings surprise are as high as 70% for the stocks.
Annaly is an mREIT that primarily owns, manages and finances a portfolio of real estate related investment securities. Our model does not conclusively predict that the company will record a positive surprise. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ANNALY CAP MGMT Price and EPS Surprise
ANNALY CAP MGMT Price and EPS Surprise | ANNALY CAP MGMT Quote
Greenwich, CT-based Starwood Property Trust is engaged in originating, investing, financing and managing commercial mortgage loans and other commercial real estate-related debt investments. Presently, the company has an Earnings ESP of 0.00% and a Zacks Rank #3. Our model does not conclusively predict that the company will record a positive surprise.
STARWOOD PROPRT Price and EPS Surprise
STARWOOD PROPRT Price and EPS Surprise | STARWOOD PROPRT Quote
MFA Financial is a New York-based mREIT, which is engaged in the business of investing in MBSs. Our proven model shows that MFA Financial is likely to beat estimates because it has an Earnings ESP of +5.00% and a Zacks Rank #2.
MFA FINANCIAL Price and EPS Surprise
MFA FINANCIAL Price and EPS Surprise | MFA FINANCIAL Quote
New York-based New Residential Investment Corp. is mainly engaged in investing and managing investments related to residential real estate. The company has an Earnings ESP of -2.04% and a Zacks Rank #3. Our model does not conclusively predict that the company will record a positive surprise.
NEW RESID INV Price and EPS Surprise
NEW RESID INV Price and EPS Surprise | NEW RESID INV Quote
New York-based Two Harbors Investment Corp. primarily invests in and manages residential MBSs and mortgage loans. The company has an Earnings ESP of -8.70% and a Zacks Rank #2. Our model does not conclusively predict that the company will record a positive surprise.
TWO HARBORS INV Price and EPS Surprise
TWO HARBORS INV Price and EPS Surprise | TWO HARBORS INV Quote
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>