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Why AGNC Investment (AGNC) Outpaced the Stock Market Today

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The most recent trading session ended with AGNC Investment (AGNC - Free Report) standing at $9.72, reflecting a +1.36% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.3%, while the tech-heavy Nasdaq appreciated by 0.56%.

Prior to today's trading, shares of the real estate investment trust had gained 2.02% over the past month. This has lagged the Finance sector's gain of 4.44% and the S&P 500's gain of 5.06% in that time.

The investment community will be closely monitoring the performance of AGNC Investment in its forthcoming earnings report. The company is predicted to post an EPS of $0.52, indicating a 22.39% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $404 million, indicating a 685.51% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.10 per share and revenue of $1.16 billion. These totals would mark changes of -19.54% and +569.51%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for AGNC Investment. Recent revisions tend to reflect the latest near-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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, AGNC Investment possesses a Zacks Rank of #3 (Hold).

Looking at valuation, AGNC Investment is presently trading at a Forward P/E ratio of 4.56. This denotes a discount relative to the industry's average Forward P/E of 7.58.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 19% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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