Annaly Capital Management (NLY) laps the stock market: Here's why

Annaly Capital Management (NLY) closed the most recent trading day at $23.26, moving +2.47% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.52%.

Coming into today, shares of the real estate investment trust had gained 3.23% in the past month. In that same time, the Finance sector gained 4.92%, while the S&P 500 gained 3%.

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 expected to report EPS of $0.72, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $469 million, up 150.41% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.9 per share and a revenue of $1.24 billion, signifying shifts of +7.41% and +399.6%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Annaly Capital Management. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 has remained steady. As of now, Annaly Capital Management holds a Zacks Rank of #3 (Hold).

Looking at valuation, Annaly Capital Management is presently trading at a Forward P/E ratio of 7.82. Its industry sports an average Forward P/E of 8.99, so one might conclude that Annaly Capital Management is trading at a discount comparatively.

Meanwhile, NLY's PEG ratio is currently 7.11. 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. As the market closed yesterday, the REIT and Equity Trust industry was having an average PEG ratio of 4.63.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 99, putting it in the top 41% 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.