Annaly Capital Management (NLY) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
In the latest trading session, Advanced Micro Devices (AMD) closed at $33.85, marking a -1.57% move from the previous day.

Annaly Capital Management (NLY) closed the most recent trading day at $9.23, moving +1.71% from the previous trading session. This change outpaced the S&P 500's 0.3% gain on the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.42%.

Prior to today's trading, shares of the real estate investment trust had lost 2.47% over the past month. This has lagged the Finance sector's gain of 2.14% and the S&P 500's gain of 2.2% in that time.

Investors will be hoping for strength from NLY as it approaches its next earnings release. On that day, NLY is projected to report earnings of $0.26 per share, which would represent a year-over-year decline of 13.33%.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 #4 (Sell).

Investors should also note NLY's current valuation metrics, including its Forward P/E ratio of 8.56. This represents a discount compared to its industry's average Forward P/E of 9.86.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 237, which puts it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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