Annaly Capital Management Inc. (NLY): Today's Featured Real Estate Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Annaly Capital Management ( NLY) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Annaly Capital Management fell 24 cents (-1.4%) to $16.64 on heavy volume. Throughout the day, 20.7 million shares of Annaly Capital Management exchanged hands as compared to its average daily volume of 10.2 million shares. The stock ranged in price between $16.56-$16.78 after having opened the day at $16.77 as compared to the previous trading day's close of $16.89. Other companies within the Real Estate industry that declined today were: Elbit Imaging ( EMITF), down 6.5%, Optibase ( OBAS), down 5.5%, Amrep Corporation ( AXR), down 5.3%, and American Realty Investors ( ARL), down 4.4%.
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Annaly Capital Management, Inc., a real estate investment trust, engages in the ownership, management, and financing of a portfolio of investment securities. Annaly Capital Management has a market cap of $16.49 billion and is part of the financial sector. The company has a P/E ratio of 112.8, above the average real estate industry P/E ratio of 52.9 and above the S&P 500 P/E ratio of 17.7. Shares are up 6% year to date as of the close of trading on Wednesday. Currently there are four analysts that rate Annaly Capital Management a buy, four analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Annaly Capital Management as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the real estate industry could consider iShares Dow Jones US Real Estate ( IYR) while those bearish on the real estate industry could consider ProShares Short Real Estate Fund ( REK).

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