Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT American Capital Agency (AGNC +1.43%) has earned a respected four-star ranking.
With that in mind, let's take a closer look at AGNC, and see what CAPS investors are saying about the stock right now.
AGNC facts
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Headquarters (founded) |
Bethesda, Md. (2008) |
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Market Cap |
$8.7 billion |
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Industry |
Mortgage REITs |
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Trailing-12-Month Revenue |
$1.1 billion |
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Management |
Chairman/CEO Malon Wilkus President/Chief Investment Officer Gary Kain |
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Return on Equity (average, past 3 years) |
16.1% |
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Cash/Debt |
$15.6 billion / $80.9 billion |
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Dividend Yield |
19.2% |
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Competitors |
Anworth Mortgage Asset MFA Financial |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 919 members who have rated AGNC believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those Fools, All-Star valuemagnet, tapped AGNC as a particularly attractive turnaround opportunity:
This is a speculative wager; however, I believe the effects of a Fed exit are largely priced into the MBS market. Thus, when the Fed does exit, there will be only minimal changes in MBS prices and mREIT book values.
mREITs earn income from the spread in rates, not necessarily whether rates are "high" or "low." When rates rise on the long-end of the yield curve, AGNC should be able to deploy more capital into MBS markets to earn larger and larger spreads. Short-term rates will not be going higher any time soon.
