AGNC Investment (AGNC) Stock Sinks As Market Gains: Here's Why

Zacks
2024-12-04

AGNC Investment (AGNC) closed at $9.48 in the latest trading session, marking a -1.25% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.05%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 0.4%.

Prior to today's trading, shares of the real estate investment trust had gained 2.67% over the past month. This has lagged the Finance sector's gain of 7% and the S&P 500's gain of 5.75% in that time.

The upcoming earnings release of AGNC Investment will be of great interest to investors. The company's upcoming EPS is projected at $0.42, signifying a 30% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $210.5 million, indicating a 909.62% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.94 per share and revenue of $169.5 million. These totals would mark changes of -25.67% and +168.9%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for AGNC Investment. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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 remained stagnant. AGNC Investment presently features a Zacks Rank of #4 (Sell).

Investors should also note AGNC Investment's current valuation metrics, including its Forward P/E ratio of 4.95. This valuation marks a discount compared to its industry's average Forward P/E of 9.31.

The REIT and Equity Trust industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 31% of over 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.

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

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