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

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In the latest trading session, Annaly Capital Management (NLY - Free Report) closed at $19.61, marking a -0.15% move from the previous day. This change lagged the S&P 500's daily loss of 0.07%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.36%.

Coming into today, shares of the real estate investment trust had lost 1.21% in the past month. In that same time, the Finance sector lost 1.77%, while the S&P 500 gained 3.05%.

Investors will be eagerly watching for the performance of Annaly Capital Management in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 7, 2024. The company's earnings per share (EPS) are projected to be $0.64, reflecting a 28.09% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $296 million, reflecting a 119.11% rise from the equivalent quarter last year.

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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.23% lower within the past month. Annaly Capital Management is currently sporting a Zacks Rank of #4 (Sell).

Looking at valuation, Annaly Capital Management is presently trading at a Forward P/E ratio of 7.45. This signifies a discount in comparison to the average Forward P/E of 7.94 for its industry.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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