TheStreet Ratings Top 10 Rating Changes
Rating Change #3
Annaly Capital Management Inc (NLY) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels, growth in earnings per share, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 124.4% when compared to the same quarter one year prior, rising from -$921.81 million to $224.76 million.
- ANNALY CAPITAL MANAGEMENT reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ANNALY CAPITAL MANAGEMENT reported lower earnings of $0.49 versus $1.90 in the prior year. This year, the market expects an improvement in earnings ($1.79 versus $0.49).
- The gross profit margin for ANNALY CAPITAL MANAGEMENT is currently very high, coming in at 93.20%. Regardless of NLY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NLY's net profit margin of 24.10% compares favorably to the industry average.
- NLY, with its decline in revenue, underperformed when compared the industry average of 16.5%. Since the same quarter one year prior, revenues fell by 11.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
Annaly Capital Management, Inc., a real estate investment trust, engages in the ownership, management, and financing of a portfolio of investment securities. The company has a P/E ratio of 106.2, above the S&P 500 P/E ratio of 17.7. Annaly Capital Management has a market cap of $15.53 billion and is part of the financial sector and real estate industry. Shares are down 0.2% year to date as of the close of trading on Tuesday.
Rating Change #2
Transocean Ltd (RIG) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.