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

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Annaly Capital Management (NLY - Free Report) closed at $19.11 in the latest trading session, marking a +1.59% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.44%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 5.21%.

Coming into today, shares of the real estate investment trust had lost 5.95% in the past month. In that same time, the Finance sector lost 6.37%, while the S&P 500 gained 2.28%.

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 $0.72 per share, which would represent a year-over-year decline of 35.71%. Our most recent consensus estimate is calling for quarterly revenue of $271.6 million, down 53.25% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.85 per share and revenue of $1.22 billion. These totals would mark changes of -32.46% and -16.91%, respectively, from last year.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 5.43% lower. Annaly Capital Management is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Annaly Capital Management currently has a Forward P/E ratio of 6.61. This valuation marks a discount compared to its industry's average Forward P/E of 6.74.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 146, which puts 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.

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


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