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Annaly (NLY) Soars 5.4%: Is Further Upside Left in the Stock?

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Annaly Capital Management (NLY - Free Report) shares rallied 5.4% in the last trading session to close at $18.82. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 14.9% loss over the past four weeks.

Annaly’s surge in its stock price follows the broader market rally driven by Trump’s announcement on April 9, 2025, of a 90-day pause on reciprocal tariffs for most trading partners, excluding China. The tariff pause reduced immediate fears of a trade war, fostering a more favorable economic outlook.  The tariff pause can ease cost pressure, which improves margins and enhances profitability. This optimism boosted investor confidence in the REITs stocks, like NLY.

This real estate investment trust is expected to post quarterly earnings of $0.70 per share in its upcoming report, which represents a year-over-year change of +9.4%. Revenues are expected to be $409 million, up 6441.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Annaly, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NLY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Annaly is a member of the Zacks REIT and Equity Trust industry. One other stock in the same industry, Ellington Credit (EARN - Free Report) , finished the last trading session 4.9% higher at $4.76. EARN has returned -25.8% over the past month.

For Ellington Credit, the consensus EPS estimate for the upcoming report has changed -28.6% over the past month to $0.27. This represents no change from what the company reported a year ago. Ellington Credit currently has a Zacks Rank of #4 (Sell).


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