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

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Annaly Capital Management (NLY - Free Report) closed at $6.65 in the latest trading session, marking a -0.15% move from the prior day. This change lagged the S&P 500's 1.53% gain on the day. At the same time, the Dow added 1.19%, and the tech-heavy Nasdaq gained 0.14%.

Heading into today, shares of the real estate investment trust had lost 1.33% over the past month, outpacing the Finance sector's loss of 1.54% and the S&P 500's loss of 3.1% in that time.

Investors will be hoping for strength from Annaly Capital Management as it approaches its next earnings release. The company is expected to report EPS of $0.26, down 7.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $366.62 million, up 1.13% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.08 per share and revenue of $1.73 billion. These totals would mark changes of -6.9% and -0.25%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Annaly Capital Management. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.67% lower. Annaly Capital Management is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Annaly Capital Management is holding a Forward P/E ratio of 6.19. Its industry sports an average Forward P/E of 9.06, 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 1.24. 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 industry currently had an average PEG ratio of 1.51 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 144, putting it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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