In the latest trading session, Annaly Capital Management (NLY) closed at $19.18, marking a +0.52% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, added 0.39%.
The real estate investment trust's stock has dropped by 2.65% in the past month, falling short of the Finance sector's gain of 4.15% and the S&P 500's gain of 6.69%.
The investment community will be paying close attention to the earnings performance of Annaly Capital Management in its upcoming release. The company is predicted to post an EPS of $0.71, indicating a 4.41% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $411 million, up 667.36% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.87 per share and a revenue of $1.47 billion, representing changes of +6.3% and +492.83%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Annaly Capital Management. 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.97% higher. At present, Annaly Capital Management boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Annaly Capital Management is currently trading at a Forward P/E ratio of 6.64. Its industry sports an average Forward P/E of 8.09, so one might conclude that Annaly Capital Management is trading at a discount comparatively.
Also, we should mention that NLY has a PEG ratio of 4.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. NLY's industry had an average PEG ratio of 1.75 as of yesterday's close.
The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 31% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Annaly Capital Management Inc (NLY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
