Annaly Capital Management: A Top Momentum Stock for the Long-Term

Annaly Capital Management (NLY) is a top momentum stock for the long-term due to its strong earnings fundamentals, good Zacks Rank, and strong Momentum and VGM Style Scores. With a Zacks Rank of #3 (Hold) and a B+ Momentum Style Score, shares are down 2.4% over the past one week and up 3.9% over the past four weeks. The company has also seen three analysts revise their earnings estimate higher in the last 60 days for fiscal 2025, with a Zacks Consensus Estimate of $2.89 per share. NLY boasts an average earnings surprise of 2.2%.

Annaly Capital Management (NLY), a diversified capital manager specializing in mortgage finance, has shown impressive performance in recent quarters, making it a top momentum stock for long-term investors. The company's strong earnings fundamentals, coupled with a solid Zacks Rank and robust Momentum and VGM Style Scores, position NLY as an attractive investment option.

Earnings and Dividends

Annaly Capital Management reported $0.73 earnings per share (EPS) for the last quarter, surpassing analysts' expectations by $0.01 [1]. This quarterly earnings report, coupled with the announcement of a $0.70 dividend per share, yields an annualized dividend of $2.80, representing a 13.4% yield [1]. The company's dividend payout ratio stands at 277.23%, indicating a significant commitment to shareholder returns [1].

Momentum and Style Scores

NLY boasts a Zacks Rank of #3 (Hold), along with a B+ Momentum Style Score, reflecting its strong momentum in the market [1]. Over the past one week, shares have declined by 2.4%, while over the past four weeks, they have appreciated by 3.9% [1]. This momentum is supported by the company's average earnings surprise of 2.2% and the upward revision of earnings estimates by three analysts in the last 60 days for fiscal 2025, with a Zacks Consensus Estimate of $2.89 per share [1].

Institutional Investor Activity

Several institutional investors have increased their stakes in Annaly Capital Management. American Assets Investment Management LLC recently acquired 204,447 shares valued at approximately $4.15 million, marking a significant new position for the firm in the first quarter [1]. This investment, along with other institutional purchases, underscores the confidence in NLY's prospects.

Analyst Ratings

Analysts have generally maintained a positive outlook on Annaly Capital Management. While some have revised their price targets and ratings, the overall consensus remains favorable, with a "Moderate Buy" rating and a consensus price target of $20.72 [1]. Key analysts, such as Jones Trading and Keefe, Bruyette & Woods, have reaffirmed their "buy" and "outperform" ratings, respectively, highlighting the company's strong fundamentals [1].

Challenges and Opportunities

Despite the positive indicators, Annaly Capital Management faces challenges due to relatively higher mortgage rates, which can impact the company's earnings and operational efficiency [2]. However, the company's strong dividend policy, liquidity position, and focus on agency mortgage-backed securities (MBS) position it well to navigate these challenges.

Conclusion

Annaly Capital Management (NLY) presents a compelling case for long-term investors, backed by robust earnings, strong momentum, and positive analyst ratings. While challenges exist, the company's solid fundamentals and institutional support make it an attractive investment option.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-american-assets-investment-management-llc-acquires-new-position-in-annaly-capital-management-inc-nysenly-2025-08-05/
[2] https://www.nasdaq.com/articles/mortgage-rates-are-relatively-high-how-approach-agnc-stock-now