Why AGNC Investment (AGNC) Outpaced the Stock Market Today

Zacks
17 Dec 2024

In the latest market close, AGNC Investment (AGNC) reached $9.65, with a +0.73% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.38%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 1.24%.

Prior to today's trading, shares of the real estate investment trust had 0% over the past month. This has lagged the Finance sector's gain of 0.1% and the S&P 500's gain of 1.17% in that time.

The investment community will be paying close attention to the earnings performance of AGNC Investment in its upcoming release. It is anticipated that the company will report an EPS of $0.42, marking a 30% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $210.5 million, indicating a 909.62% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.94 per share and revenue of $304 million, indicating changes of -25.67% and +223.58%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for AGNC Investment. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AGNC Investment is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, AGNC Investment is presently being traded at a Forward P/E ratio of 4.94. This signifies a discount in comparison to the average Forward P/E of 9.47 for its industry.

The REIT and Equity Trust industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 33% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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