Annaly Capital Management (NLY) Suffers a Larger Drop Than the General Market: Key Insights

In the latest trading session, Annaly Capital Management (NLY) closed at $22.00, marking a -2.7% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.59%. Elsewhere, the Dow saw a downswing of 0.6%, while the tech-heavy Nasdaq depreciated by 0.65%.

Shares of the real estate investment trust have depreciated by 2.16% over the course of the past month, underperforming the Finance sector's loss of 1.37%, and the S&P 500's loss of 1.37%.

The investment community will be closely monitoring the performance of Annaly Capital Management in its forthcoming earnings report. The company's upcoming EPS is projected at $0.78, signifying a 6.85% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $545 million, indicating a 97.64% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.09 per share and a revenue of $2.03 billion, representing changes of +5.82% and +78.78%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Annaly Capital Management. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Annaly Capital Management boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Annaly Capital Management currently has a Forward P/E ratio of 7.32. Its industry sports an average Forward P/E of 7.97, so one might conclude that Annaly Capital Management is trading at a discount comparatively.

One should further note that NLY currently holds a PEG ratio of 1.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the REIT and Equity Trust industry had an average PEG ratio of 1.29.

The REIT and Equity Trust industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 235, finds itself in the bottom 5% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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