AGNC Investment (AGNC) Outperforms Market: Key Reasons and Future Expectations Explained
In the latest trading session, AGNC Investment (AGNC) closed at $9.31, marking a +1.2% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.11%. At the same time, the Dow added 1.19%, and the tech-heavy Nasdaq gained 1.43%.
Shares of the real estate investment trust had gained 4.07% in the past month. In that same time, the Finance sector gained 1.91%, while the S&P 500 gained 3.92%.
The investment community will be closely monitoring the performance of AGNC Investment in its forthcoming earnings report. The company's upcoming EPS is projected at $0.42, signifying a 20.75% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $254.19 million, indicating a 8572.87% upward movement from the same quarter last year.
AGNC's full-year Zacks Consensus Estimates are calling for earnings of $1.67 per share and revenue of $994.47 million. These results would represent year-over-year changes of -11.17% and +5424.85%, respectively.
Investors might also notice recent changes to analyst estimates for AGNC Investment. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 has remained steady. Currently, AGNC Investment is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, AGNC Investment is presently being traded at a Forward P/E ratio of 5.53. This denotes a discount relative to the industry average Forward P/E of 8.27.
The REIT and Equity Trust industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 193, positioning it in the bottom 22% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
In conclusion, AGNC Investment (AGNC) has shown strong performance in recent trading sessions and is expected to report a drop in earnings for the upcoming quarter compared to last year. However, the company is still expected to see significant revenue growth. Investors should keep an eye on the company's upcoming earnings report and its Zacks Rank to make informed investment decisions. You can find more information on these metrics and much more on Zacks.com.
