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Annaly Capital Management (NLY) closed at $21.17 in the latest trading session, marking a +0.95% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.49% for the day. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq increased by 1.22%.
Shares of the real estate investment trust witnessed a gain of 1.01% over the previous month, beating the performance of the Finance sector with its loss of 5.85% and the S&P 500's loss of 8.15%.
Analysts and investors alike will be keeping a close eye on the performance of Annaly Capital Management in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.70, indicating a 9.38% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $275 million, up 4363.57% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.81 per share and revenue of $1.15 billion. These totals would mark changes of +4.07% and +364.09%, respectively, from last year.
Any recent changes to analyst estimates for Annaly Capital Management should also be noted by investors. 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 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Annaly Capital Management holds a Zacks Rank of #2 (Buy).
With respect to valuation, Annaly Capital Management is currently being traded at a Forward P/E ratio of 7.46. Its industry sports an average Forward P/E of 8.3, so one might conclude that Annaly Capital Management is trading at a discount comparatively.
We can additionally observe that NLY currently boasts a PEG ratio of 4.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the REIT and Equity Trust industry stood at 1.6 at the close of the market yesterday.