Is Annaly Capital Management a Buy After Getting Pummeled?

It's safe to say that fear is dominating the mortgage REIT sector, with shares of Annaly Capital Management (NYSE: NLY  ) and American Capital Agency (NASDAQ: AGNC  ) down by double digits since the beginning of the year. To a certain extent, the fear is warranted given what's happened to these companies' book values; both are off by 20% year to date. At the same time, there's an argument that these companies' current discounts to book value are excessively pessimistic -- shares of both are trading for 0.84 times book value. If this is the case, then investors may want to consider establishing a position.

In the video below, Motley Fool contributor John Maxfield delves into this question, particularly as it relates to Annaly Capital Management. As John explains, even though he's not a big fan of the mREIT's management team, it's hard to deny that the current sentiment around these companies as well as their valuations are otherwise strong "buy" signals.

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Related Tickers

9/26/2016 4:00 PM
AGNC $19.82 Up +0.12 +0.61%
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Annaly Capital Man… CAPS Rating: ****