Yahoo News Annaly Capital Management (NLY) Outpaces Stock Market Gains: What You Should Know
Annaly Capital Management (NLY) closed the most recent trading day at $7.28, moving +1.96% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.6%. Meanwhile, the Dow gained 1.34%, and the Nasdaq, a tech-heavy index, added 2.26%.
Coming into today, shares of the real estate investment trust had lost 3.51% in the past month. In that same time, the Finance sector lost 5.95%, while the S&P 500 lost 5.3%.
NLY will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.26, up 23.81% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $345 million, up 126.39% from the year-ago period.
NLY's full-year Zacks Consensus Estimates are calling for earnings of $1 per share and revenue of $1.14 billion. These results would represent year-over-year changes of 0% and +13.53%, respectively.
Investors might also notice recent changes to analyst estimates for NLY. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NLY is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, NLY is currently trading at a Forward P/E ratio of 7.18. This represents a discount compared to its industry's average Forward P/E of 8.62.
We can also see that NLY currently has a PEG ratio of 1.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The REIT and Equity Trust industry currently had an average PEG ratio of 4.07 as of yesterday's close.
The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 25% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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