IIn the last trading session, Annaly Capital Management (NLY) closed at $7.09, marking a -0.42% move from the previous day. That move was narrower than the S&P 500’s 0.53% daily loss. Elsewhere, the Dow Jones lost 0.29%, while the tech-heavy Nasdaq lost 0.1%.
Going into today, shares of the real estate investment trust had lost 8.25% over the past month, lagging the financials sector’s 3.89% loss and the loss of 4 .24% of the S&P 500 during this period.
Investors are hoping for strength from Annaly Capital Management as it approaches its next earnings release. In that report, analysts expect Annaly Capital Management to post earnings of $0.24 per share. This would mark a year-over-year decline of 17.24%. Meanwhile, our latest consensus estimate calls for revenue of $341 million, down 50.39% from the prior year quarter.
Looking to the full year, our Zacks consensus estimates suggest analysts are expecting earnings of $0.97 per share and revenue of $1.43 billion. These totals would mark changes of -16.38% and -17.46%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Annaly Capital Management. These recent revisions tend to reflect the evolving nature of short-term trading trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.
The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past 30 days, our consensus EPS projection is down 5.54%. Annaly Capital Management currently has a Zacks ranking of #5 (strong sell).
Valuation is also important, so investors should note that Annaly Capital Management has a Forward P/E ratio of 7.37 at this time. This represents a discount to the average PER of its sector of 8.6.
Additionally, it is worth mentioning that NLY has a PEG ratio of 1.47. This popular measure is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. The REITs and equity trusts sector currently had an average PEG ratio of 1.88 at yesterday’s close.
The REIT and equity trust industry is part of the finance sector. This industry currently has a Zacks Industry Rank of 208, which places it in the bottom 19% of all 250+ industries.
The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
To follow NLY in future trading sessions, be sure to use Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.