With half of 2012 in the record books, it's important to take a look at whether the stocks that interest you can live up to their full potential. By making sure you know about a company's future plans and possible challenges, you can make a better decision about whether it's a smart investment for your portfolio.
Today, let's take a look at Annaly Capital
Stats on Annaly Capital
|Average Stock Price Target||$16.94|
|2012 EPS Estimate||$1.97|
|2013 EPS Estimate||$2.05|
|2012 Revenue Growth Estimate||(2%)|
|2013 Revenue Growth Estimate||5.3%|
|CAPS Rating (out of 5)||****|
Source: Yahoo! Finance.
Where will Annaly Capital go from here?
Annaly finds itself in same boat as American Capital Agency
One threat, however, could come from a local government proposal to use eminent domain to buy mortgage loans, which the government would then restructure to get rid of problems with underwater mortgages. Under that scenario, Annaly and its peers might have their mortgage-backed securities essentially compromised. Some could argue that non-agency-backed loans like the ones that Chimera Investment
That may be why analysts don't expect much price appreciation from Annaly. But with a 13% dividend yield, Annaly doesn't need to have its stock price go up in order to give investors a solid return.
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Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. The Motley Fool owns shares of Annaly Capital. Motley Fool newsletter services have recommended buying shares of Annaly Capital. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.