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

Zacks Equity Research
·3-min read

Annaly Capital Management (NLY) closed at $8.86 in the latest trading session, marking a +0.45% move from the prior day. This move outpaced the S&P 500's daily gain of 0.36%.

Heading into today, shares of the real estate investment trust had lost 0.23% over the past month, lagging the Finance sector's gain of 1% and the S&P 500's gain of 5.21% in that time.

Wall Street will be looking for positivity from NLY as it approaches its next earnings report date. This is expected to be April 28, 2021. On that day, NLY is projected to report earnings of $0.26 per share, which would represent year-over-year growth of 23.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $408.44 million, up 692.31% from the year-ago period.

NLY's full-year Zacks Consensus Estimates are calling for earnings of $1.04 per share and revenue of $1.64 billion. These results would represent year-over-year changes of -5.45% and +23.61%, respectively.

Investors should also note any recent changes to analyst estimates for NLY. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. NLY is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, NLY is currently trading at a Forward P/E ratio of 8.54. Its industry sports an average Forward P/E of 10.5, so we one might conclude that NLY is trading at a discount comparatively.

We can also see that NLY currently has a PEG ratio of 1.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NLY's industry had an average PEG ratio of 3.85 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 176, putting it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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