Annaly Capital Management (NLY - Free Report) closed the most recent trading day at $6.66, moving +0.6% from the previous trading session. This move lagged the S&P 500's daily gain of 6%. At the same time, the Dow added 5.2%, and the tech-heavy Nasdaq gained 6.23%.
Coming into today, shares of the real estate investment trust had lost 36.47% in the past month. In that same time, the Finance sector lost 33.35%, while the S&P 500 lost 29.18%.
Investors will be hoping for strength from NLY as it approaches its next earnings release. The company is expected to report EPS of $0.25, down 13.79% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for NLY. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NLY is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, NLY is currently trading at a Forward P/E ratio of 6.26. Its industry sports an average Forward P/E of 6.21, so we one might conclude that NLY is trading at a premium comparatively.
The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.