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Annaly Capital Management (NLY) Flat As Market Gains: What You Should Know

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Annaly Capital Management (NLY) closed at $8.86 in the latest trading session, marking no change from the prior day. This change lagged the S&P 500's 1.21% gain on the day.

Heading into today, shares of the real estate investment trust had gained 1.61% over the past month, outpacing the Finance sector's loss of 1.07% and the S&P 500's loss of 0.9% in that time.

NLY will be looking to display strength as it nears its next earnings release. In that report, analysts expect NLY to post earnings of $0.26 per share. This would mark a year-over-year decline of 18.75%. Meanwhile, our latest consensus estimate is calling for revenue of $410.15 million, down 8.31% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.10 per share and revenue of $1.8 billion. These totals would mark changes of 0% and +35.3%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for NLY. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team 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.

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, the Zacks Consensus EPS estimate remained stagnant. NLY is currently a Zacks Rank #3 (Hold).

Digging into valuation, NLY currently has a Forward P/E ratio of 8.04. This represents a discount compared to its industry's average Forward P/E of 10.6.

Meanwhile, NLY's PEG ratio is currently 1.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The REIT and Equity Trust was holding an average PEG ratio of 2.68 at yesterday's closing price.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NLY in the coming trading sessions, be sure to utilize Zacks.com.


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