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Annaly Capital Management (NLY) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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In the latest market close, Annaly Capital Management (NLY - Free Report) reached $19.30, with a +0.57% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.23%. Meanwhile, the Dow experienced a rise of 1.06%, and the technology-dominated Nasdaq saw an increase of 1.7%.

Prior to today's trading, shares of the real estate investment trust had lost 5.47% over the past month. This has lagged the Finance sector's loss of 3.81% and the S&P 500's gain of 0.94% in that time.

The investment community will be closely monitoring the performance of Annaly Capital Management in its forthcoming earnings report. The company is scheduled to release its earnings on February 7, 2024. The company is expected to report EPS of $0.64, down 28.09% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $296 million, showing a 119.11% escalation compared to the year-ago quarter.

Investors might also notice recent changes to analyst estimates for Annaly Capital Management. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return 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).

In terms of valuation, Annaly Capital Management is currently trading at a Forward P/E ratio of 7.12. This expresses a discount compared to the average Forward P/E of 7.95 of its industry.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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