Annaly Capital Management (NLY) Gains But Lags Market: What You Should Know

In the latest trading session, Annaly Capital Management (NLY) closed at $19.42, marking a +0.1% move from the previous day. The stock lagged the S&P 500's daily gain of 1.97%. Meanwhile, the Dow gained 1.88%, and the Nasdaq, a tech-heavy index, added 0.24%.

Prior to today's trading, shares of the real estate investment trust had lost 24.69% over the past month. This has lagged the Finance sector's loss of 9.76% and the S&P 500's loss of 9.93% in that time.

Investors will be hoping for strength from Annaly Capital Management as it approaches its next earnings release. On that day, Annaly Capital Management is projected to report earnings of $2 per share, which would represent year-over-year growth of 78.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $366.62 million, up 1.13% from the year-ago period.

NLY's full-year Zacks Consensus Estimates are calling for earnings of $8.48 per share and revenue of $1.73 billion. These results would represent year-over-year changes of +82.76% and -0.25%, respectively.

It is also important to note the recent changes to analyst estimates for Annaly Capital Management. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 96.3% higher within the past month. Annaly Capital Management is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that Annaly Capital Management has a Forward P/E ratio of 2.29 right now. Its industry sports an average Forward P/E of 7.48, so we one might conclude that Annaly Capital Management is trading at a discount comparatively.

We can also see that NLY currently has a PEG ratio of 0.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The REIT and Equity Trust was holding an average PEG ratio of 0.91 at yesterday's closing price.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% 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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