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Why Annaly Capital Management (NLY) Dipped More Than Broader Market Today

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Annaly Capital Management (NLY - Free Report) ended the recent trading session at $19.34, demonstrating a -1.53% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.37%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq lost 0.19%.

Heading into today, shares of the real estate investment trust had lost 1.31% over the past month, outpacing the Finance sector's loss of 2.36% and lagging the S&P 500's gain of 1.56% in that time.

The investment community will be paying close attention to the earnings performance of Annaly Capital Management in its upcoming release. The company is predicted to post an EPS of $0.64, indicating a 28.09% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $296 million, up 119.11% from the year-ago period.

Investors might also notice 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Annaly Capital Management is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Annaly Capital Management's current valuation metrics, including its Forward P/E ratio of 7.28. This signifies a discount in comparison to the average Forward P/E of 8.23 for its industry.

The REIT and Equity Trust industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 163, finds itself in the bottom 36% 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.

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


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