Annaly Capital Management (NLY) Laps the Stock Market: Here's Why

In the latest trading session, Annaly Capital Management (NLY) closed at $21.23, marking a +2.12% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.15%. Meanwhile, the Dow gained 1.38%, and the Nasdaq, a tech-heavy index, added 1.38%.

Shares of the real estate investment trust have depreciated by 9.69% over the course of the past month, underperforming the Finance sector's loss of 8.15%, and the S&P 500's loss of 5.69%.

Investors will be eagerly watching for the performance of Annaly Capital Management in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.74, indicating a 2.78% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $494 million, indicating a 124.58% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.96 per share and a revenue of $1.98 billion, representing changes of +1.37% and +74.02%, respectively, from the prior year.

Any recent changes to analyst estimates for Annaly Capital Management should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Annaly Capital Management currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Annaly Capital Management is presently trading at a Forward P/E ratio of 7.03. This represents a discount compared to its industry average Forward P/E of 7.38.

Also, we should mention that NLY has a PEG ratio of 6.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the REIT and Equity Trust industry had an average PEG ratio of 1.72.

The REIT and Equity Trust industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 213, finds itself in the bottom 14% echelons 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Annaly Capital Management Inc (NLY): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research