Annaly Capital: Steep Plunge Unveils My Bullish Thesis - Here's Why (Rating Upgrade)

Summary

  • Despite its market leadership, Annaly Capital stock has underperformed the S&P 500 over the past ten years.
  • Picking spots on NLY is critical, given its demonstrated long-term underperformance. As such, I was cautious in late November 2022.
  • Given its recent steep plunge, I explain why I'm ready to turn bullish on NLY. Investors have rapidly priced in the surge in bond yields as NLY holders capitulated.
  • Investors who missed out on buying NLY at its October lows should capitalize on recent dip-buying momentum, supported by an attractive forward dividend yield of 14.7%.
  • I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Stacked of Coins on table with percentage icon and Gray Background With Illustration Shows Increasing of Interest Rates / Financial Concept.

Boy Wirat

Annaly Capital Management (NYSE:NLY) is one of the leading mREITs in my coverage, with a market cap of $8.8B. That makes Annaly a leader in the mREIT universe and a force to be reckoned with. Despite that, NLY has underperformed the

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  • We updated members that the NASDAQ had long-term bearish price action signals in November 2021.
  • We told members that the S&P 500 likely bottomed in October 2022.
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This article was written by

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks.

He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing.

He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out.

The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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