Here's Why AGNC Investment (AGNC) Fell More Than Broader Market

AGNC Investment (AGNC) closed the most recent trading day at $11.21, moving -1.23% from the previous trading session. This move lagged the S&P 500's daily loss of 0.43%. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.92%.

Coming into today, shares of the real estate investment trust had lost 5.18% in the past month. In that same time, the Finance sector gained 0.33%, while the S&P 500 lost 0.5%.

Investors will be eagerly watching for the performance of AGNC Investment in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.36, indicating a 18.18% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $310.89 million, indicating a 95.53% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.5 per share and revenue of $1.43 billion, which would represent changes of 0% and +112.45%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for AGNC Investment. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.45% downward. As of now, AGNC Investment holds a Zacks Rank of #4 (Sell).

Looking at valuation, AGNC Investment is presently trading at a Forward P/E ratio of 7.55. Its industry sports an average Forward P/E of 7.87, so one might conclude that AGNC Investment is trading at a discount comparatively.

The REIT and Equity Trust industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 203, positioning it in the bottom 18% of all 250+ industries.

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

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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