Latest news with #AnnalyCapitalManagement
Yahoo
6 days ago
- Business
- Yahoo
3 Reasons to Buy Annaly Capital Management Stock Like There's No Tomorrow
Key Points Annaly Capital Management is a mortgage REIT, a complex corner of the REIT sector. The company has a huge 14%+ dividend yield and it increased its dividend in 2025. There are reasons to like Annaly Capital, but make sure you understand what you are buying. 10 stocks we like better than Annaly Capital Management › The most eye-catching feature of Annaly Capital Management's (NYSE: NLY) stock is its 14%+ dividend yield. There are some strong reasons to consider buying the mortgage real estate investment trust (REIT). And yet there's a caveat here that income investors specifically will want to know before buying this stock like there's no tomorrow. Here are three reasons to like Annaly and one very big reason to avoid it. What does Annaly Capital Management do? As noted, Annaly is a mortgage REIT, which is a unique corner of the broader REIT sector. It buys mortgages that have been pooled together into bond-like securities, which is very different from buying physical properties and leasing them out to tenants. The mortgage securities Annaly buys are impacted by things like interest rates, housing market dynamics, and mortgage repayment rates. It would be hard for most investors to track this business. Annaly has done a commendable job of creating value for investors over time. Notably, the total return of the stock has kept pace with the total return of the S&P 500 index (SNPINDEX: ^GSPC) over the long term. And the stock's performance has been notably different from that of the S&P 500 index, suggesting that Annaly would provide attractive diversification benefits to a portfolio. Those two facts combined are reason one that investors might like to buy this stock, perhaps with abandon. Reason two is that Annaly just increased its dividend at the start of 2025. There's a saying among dividend investors that the safest dividend is the one that has just been increased. At the very least, that dividend hike suggests that Annaly's business seems to be doing well right now. The third reason to jump on Annaly's stock is interest rates. It seems increasingly likely that interest rates are going to be cut before they are increased again. The main asset Annaly owns is its portfolio of mortgage bonds. When interest rates fall, the value of bonds tends to rise. So an interest rate cut would likely create value here. The dividend yield is the reason to stay away from Annaly Notice that the huge size of Annaly's dividend yield isn't in the list above. At 14%+ you would think it would be, especially given the recent dividend hike. But there's some history here to examine. Notice in the chart below that the dividend has been extremely volatile over time, including a long period in which it was steadily reduced. And yet there's that strong total return performance. The key is that to achieve that strong total return, investors would need to reinvest their dividends. Investors trying to live off of the dividends they generate from their portfolios would have been sorely disappointed with an investment in Annaly Capital. Given that dividend volatility is pretty normal for a mortgage REIT, this dynamic isn't likely to change. Annaly Capital will probably be a bad investment for most dividend investors, who are likely looking for dividends that grow steadily over time. This is a stock that investors focused on asset allocation will appreciate, providing exposure to a unique asset class that performs differently from the broader equity space. The lofty dividend yield, in the end, isn't really the most important feature here. Make sure you understand what you are buying with Annaly The big problem is that some income investors reach for yield without taking Annaly's business model into consideration. And then there's a mismatch between what an investor wants and what an investor gets. Annaly isn't a bad company, but it probably won't be a great dividend stock for income investors. However, if you are an asset allocator, this total return stock could be an interesting buy right now. Should you invest $1,000 in Annaly Capital Management right now? Before you buy stock in Annaly Capital Management, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Annaly Capital Management wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 3 Reasons to Buy Annaly Capital Management Stock Like There's No Tomorrow was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
22-07-2025
- Business
- Yahoo
Annaly Capital Management (NLY) Reports Earnings Tomorrow: What To Expect
Mortgage finance REIT Annaly Capital Management (NYSE:NLY) will be announcing earnings results this Wednesday afternoon. Here's what to expect. Annaly Capital Management missed analysts' revenue expectations by 61.1% last quarter, reporting revenues of $186.6 million, down 62.9% year on year. It was a softer quarter for the company, with EPS in line with analysts' estimates. Is Annaly Capital Management a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Annaly Capital Management's revenue to grow 796% year on year to $429.9 million, a reversal from the 78% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.71 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Annaly Capital Management has missed Wall Street's revenue estimates five times over the last two years. Looking at Annaly Capital Management's peers in the banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AGNC Investment's revenues decreased 367% year on year, missing analysts' expectations by 141%, and Citigroup reported revenues up 8%, topping estimates by 3.5%. Citigroup traded up 2.9% following the results. Read our full analysis of AGNC Investment's results here and Citigroup's results here. There has been positive sentiment among investors in the banks segment, with share prices up 7.8% on average over the last month. Annaly Capital Management is up 4.3% during the same time and is heading into earnings with an average analyst price target of $20.70 (compared to the current share price of $19.96). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-07-2025
- Business
- Yahoo
Zacks Industry Outlook Highlights Annaly Capital Management, Dynex Capital and Ellington Financial
Chicago, IL – July 15, 2025 – Today, Zacks Equity Research discusses Annaly Capital Management NLY, Dynex Capital, Inc. DX and Ellington Financial LLC EFC. Link: The Zacks REIT and Equity Trust industry is facing volatility in mortgage rates due to macroeconomic uncertainty. With rates likely to remain relatively higher, the industry players will continue to face earnings pressure in the near term. However, despite ongoing affordability challenges in the housing market, purchase originations and refinancing activities are witnessing an improving trend. With this, companies like Annaly Capital Management, Dynex Capital, Inc. and Ellington Financial LLC are well-poised to navigate industry challenges. The Zacks REIT and Equity Trust industry comprises mortgage REITs, also known as mREITs. Industry participants invest in and originate mortgages and mortgage-backed securities (MBS), and provide mortgage credit for homeowners and businesses. Typically, these companies focus on either the residential or commercial mortgage markets. Some invest in both markets through asset-backed securities. Agency securities are backed by the federal government, making them safer bets and limiting credit risks. Such REITs raise funds in the debt and equity markets through common and preferred equity, repurchase agreements, structured financing, convertible and long-term debt, and other credit facilities. The net interest margin (NIM), the spread between interest income on mortgage assets and securities held, as well as funding costs, is a key revenue metric for mREITs. Industry Resorts to Dividend Cuts as Book Values Erode:Volatility in the mortgage markets, relatively high interest rates and the widening of the spread between the 30-year Agency MBS and 10-year treasury rate are affecting valuations of Agency mortgage-backed securities. As such, agency mortgage REITs are witnessing slight tangible book value decreases as spreads on benchmark indices have widened, but have been more stable than the volatility in 2023. Though the central bank lowered interest rates by 100 basis points in 2024, it has kept them steady since then, given uncertainty related to tariffs and their impact on the economy and inflation. This will increase earnings pressure for highly leveraged mREITs. This scenario compels industry players to reduce the dividend to a level that can be covered by earnings. This may result in capital outflows from the industry, resulting in greater book value declines for companies in the near term. Conservative Approach to Impede Returns:The scenario in mortgage markets, uncertain financial conditions and resultant lower fixed-income fund flows have strained credit-risky assets. Given this, mREITs are likely to be selective in their investments, resulting in lower portfolio growth. Also, numerous industry players have resorted to a higher hedge ratio to reduce interest rate risks. While such moves may seem prudent in the ongoing uncertain times, they will impede growth. As companies prioritize risk and liquidity management over incremental returns, at least in the short term, robust returns are expected to remain elusive. Relatively Lower Mortgage Rate to Aid Loan Demand: Despite interest rate cuts by the Federal Reserve in 2024, mortgage rates are not witnessing a significant decline but are relatively lower than last year. As such, purchase applications and refinancing activities are showing signs of improvement, indicating some latent demand in the market. With improving demand for originations and refinancing, operational and financial challenges for mREIT industry players will decline, increasing the gain on sale margin and investment activities. The Zacks REIT and Equity Trust industry is housed within the broader Zacks Finance sector. It carries a Zacks Industry Rank #162, which places it in the bottom 34% of 246 Zacks industries. The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates underperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry's positioning in the bottom 50% of the Zacks-ranked industries is an outcome of the negative earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group's earnings growth potential. The industry's current-year earnings estimate moved 6.5% down over the last year. Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry's recent stock-market performance and valuation picture. The Zacks REIT and Equity Trust industry has underperformed the broader Zacks Finance sector and the S&P 500 composite in the past year. The industry has gained 2.7% in the above-mentioned period compared with the broader sector's rise of 18.7%. Further, the S&P Index has grown 12.5% over the past year. Based on the trailing 12-month price-to-book (P/BV), which is a commonly used multiple for valuing mREITs, the industry is trading at 1.00X compared with the S&P 500's 8.42X. In the past five years, the industry has traded as high as 1.06X, as low as 0.70X and at the median of 0.90X. As finance stocks typically have a low P/BV ratio, comparing REIT and Equity Trust with the S&P 500 might not make sense to many investors. A comparison of the group's P/BV ratio with that of the broader sector ensures that the group is trading at a solid discount. The Zacks Finance sector's trailing 12-month P/BV came in at 4.26X. This is above the Zacks REIT and Equity Trust industry's ratio. Annaly:The company's investment strategy is driven by the prudent selection of assets and effective capital allocation to achieve stable returns. Its investment strategy involves traditional Agency MBSs, which provide downside protection and investments in more non-agency and credit-focused asset classes that enhance returns. Also, a scaled MSR platform will continue to benefit from a low prepayment environment. The company is focusing on improving its capabilities by acquiring newly originated MSRs from its partner network, which will continue to provide a strong advantage in expanding its MSR business. As of March 31, 2025, its investment portfolio aggregated $84.9 billion. NLY's diversified investment strategy will likely be a key contributor to long-term growth and stability. By diversifying its investments across the mortgage market, the company is better positioned to capitalize on opportunities as they occur in multiple areas while limiting the risks associated with overexposure to any particular location. The company's 2025 earnings have been unchanged at $2.87 per share over the past month. It indicates a year-over-year rise of 6.3%. NLY currently has a Zacks Rank of #3 (Hold) and a market capitalization of $11.6 billion. Dynex Capital: This is a mortgage and consumer finance company that uses its loan production operations to create investments for its portfolio. Currently, the company's primary production operations include the origination of mortgage loans secured by multi-family properties and the origination of loans secured by manufactured homes. The company has recently expanded its production activities to include commercial real estate loans and plans to expand into other financial products going forward. DX uses certain derivative instruments ("interest rate hedges") to hedge exposure to interest rate risks arising from its investment and financing portfolio. The company's interest income continues to increase, driven by its purchases of higher-coupon investments in the past year. Also, expected Fed rate cuts later this year will support its interest income. The company's 2025 earnings estimates have been unchanged at $1.97 per share over the past month. It indicates a year-over-year jump of 662.9%. DX has a Zacks Rank of #3 at present and a market capitalization of $1.37 billion. Ellington Financial: The company invests in a diverse array of financial assets. These include residential and commercial mortgage loans and mortgage-backed securities, consumer loans, and asset-backed securities. The assets are supported by consumer loans, collateralized loan obligations, non-mortgage and mortgage-related derivatives, equity investments in loan origination companies, and other strategic investments. EFC is well-positioned to weather volatility in the mortgage market, supported by its diversified exposure across residential and commercial mortgage loan portfolios and strong momentum in its securitization platform. The company's loan originations, especially in commercial mortgage bridge loans, proprietary reverse mortgages and closed-end second lien loans, continue to contribute to stable growth and income. To navigate market uncertainty, Ellington Financial is actively leveraging dynamic hedging strategies, maintaining a broad and balanced portfolio, securing multiple sources of financing, and operating with low leverage. These measures reflect a disciplined approach to risk management and a commitment to preserving book value while adapting to shifting market conditions. The company's 2025 earnings estimates have been unchanged at $1.65 per share over the past month, indicating year-over-year growth of 13%. EFC has a Zacks Rank of #2 (Buy) at present and a market capitalization of $1.25 billion. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. 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 Ellington Financial Inc. (EFC) : Free Stock Analysis Report Annaly Capital Management Inc (NLY) : Free Stock Analysis Report Dynex Capital, Inc. (DX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
11-07-2025
- Business
- Yahoo
Jim Cramer on Annaly: 'I Have Been Against Annaly For Many, Many Years'
Annaly Capital Management, Inc. (NYSE:NLY) is one of the 13 stocks recently discussed by Jim Cramer. A caller asked for Cramer's thoughts on the company, and in response, he commented: 'I have been against Annaly for many, many years because I think all it is just this mishmash of securities that I never know what they are because they don't, you know, they don't really tell you, and it's got a big yield, but I want to own growth. Growth is the only safety in this market.' An aerial view of a residential neighbourhood, its mortgage finance investments having a positive effect on the economy. Annaly Capital Management, Inc. (NYSE:NLY) is a real estate investment trust that manages a diversified portfolio of mortgage-related assets, including agency and non-agency securities, mortgage loans, and servicing rights. In 2022, when a caller discussed that the company's dividend is safe, Cramer replied that despite it, 'I'm not going to recommend that stock.' For context, since the comment was aired, NLY stock is down about 27%. While we acknowledge the potential of NLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
CNBC
07-07-2025
- Business
- CNBC
Cramer's Lightning Round: 'You want to be' in Lincoln Educational Services
Karman Holdings: "The missile story's are the kind of companies that are making a lot of people a lot of money." Annaly Capital Management: "I have been against Annaly for many, many got a big yield, but I want to own growth." Lincoln Educational Services: "...That's where you want to be." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest
