AGNC Investment (AGNC) Laps the Stock Market: Here's Why

Zacks
2024-09-11

AGNC Investment (AGNC) closed the most recent trading day at $10.26, moving +0.49% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.45%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.84%.

The the stock of real estate investment trust has risen by 2.61% in the past month, lagging the Finance sector's gain of 4.51% and overreaching the S&P 500's gain of 2.54%.

The investment community will be paying close attention to the earnings performance of AGNC Investment in its upcoming release. The company is predicted to post an EPS of $0.50, indicating a 23.08% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $419 million, showing an 890.57% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.11 per share and revenue of $798 million, which would represent changes of -19.16% and +424.39%, respectively, from the prior year.

Any recent changes to analyst estimates for AGNC Investment should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, AGNC Investment holds a Zacks Rank of #3 (Hold).

From a valuation perspective, AGNC Investment is currently exchanging hands at a Forward P/E ratio of 4.84. This denotes a discount relative to the industry's average Forward P/E of 8.63.

The REIT and Equity Trust industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AGNC in the coming trading sessions, be sure to utilize Zacks.com.

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