Here's Why Annaly Capital Management (NLY) Fell More Than Broader Market

Annaly Capital Management (NLY) ended the recent trading session at $22.41, demonstrating a -2.44% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.33%. Meanwhile, the Dow lost 0.95%, and the Nasdaq, a tech-heavy index, lost 1.59%.

Prior to today's trading, shares of the real estate investment trust had lost 0.04% was narrower than the Finance sector's loss of 2.34% and lagged the S&P 500's gain of 0.58%.

The upcoming earnings release of Annaly Capital Management will be of great interest to investors. The company is forecasted to report an EPS of $0.74, showcasing a 2.78% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $494 million, up 124.58% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.96 per share and a revenue of $1.98 billion, signifying shifts of +1.37% and +74.02%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Annaly Capital Management. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.94% increase. At present, Annaly Capital Management boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Annaly Capital Management currently has a Forward P/E ratio of 7.77. This expresses a discount compared to the average Forward P/E of 8.19 of its industry.

Also, we should mention that NLY has a PEG ratio of 7.06. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. REIT and Equity Trust stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.

The REIT and Equity Trust industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 207, positioning it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow NLY in the coming trading sessions, be sure to utilize Zacks.com.