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Why Annaly Capital Management (NLY) Dipped More Than Broader Market Today

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In the latest close session, Annaly Capital Management (NLY - Free Report) was down 2.09% at $20.60. This change lagged the S&P 500's 0.03% loss on the day. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.01%.

Shares of the real estate investment trust have depreciated by 7.96% over the course of the past month, underperforming the Finance sector's loss of 2.98%, and the S&P 500's gain of 0.53%.

Investors will be eagerly watching for the performance of Annaly Capital Management in its upcoming earnings disclosure. In that report, analysts expect Annaly Capital Management to post earnings of $0.78 per share. This would mark year-over-year growth of 6.85%. At the same time, our most recent consensus estimate is projecting a revenue of $545 million, reflecting a 97.64% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.09 per share and a revenue of $2.03 billion, representing changes of +5.82% and +78.78%, respectively, from the prior year.

Any recent changes to analyst estimates for Annaly Capital Management should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Annaly Capital Management presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Annaly Capital Management is presently being traded at a Forward P/E ratio of 6.81. This represents a discount compared to its industry average Forward P/E of 7.22.

We can additionally observe that NLY currently boasts a PEG ratio of 1.65. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The REIT and Equity Trust was holding an average PEG ratio of 1.2 at yesterday's closing price.

The REIT and Equity Trust industry is part of the Finance sector. With its current Zacks Industry Rank of 226, this industry ranks in the bottom 9% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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