AGNC Investment (AGNC) came out with quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.89%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.42 per share when it actually produced earnings of $0.38, delivering a surprise of -9.52%.Over the last four q ...

Dynex Capital (DX) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.44 per share. This compares to a loss of $0.1 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -43.18%. A quarter ago, it was expected that this mortgage real estate investment trust would post earnings of $0.49 per share when it actually produced earnings of $0.22, delivering a surprise of -55.1%.Over the last fou ...

Core Viewpoint - The Zacks REIT and Equity Trust industry is experiencing volatility in mortgage rates due to macroeconomic uncertainty, leading to earnings pressure in the near term [1] Industry Overview - The Zacks REIT and Equity Trust industry consists of mortgage REITs (mREITs) that invest in and originate mortgages and mortgage-backed securities (MBS), providing mortgage credit for homeowners and businesses [3] - mREITs typically focus on either residential or commercial mortgage markets, with some investing in both through asset-backed securities [3] - Agency securities, backed by the federal government, are considered safer investments, limiting credit risks [3] - Key revenue metrics for mREITs include net interest margin, which is the spread between interest income on mortgage assets and funding costs [3] Current Challenges - The industry is facing dividend cuts as book values erode due to tightened mortgage spreads and expected higher interest rates, leading to earnings pressure for highly leveraged mREITs [4] - A conservative investment approach is likely to impede returns, as mREITs prioritize risk and liquidity management over growth [5] - Despite a recent Federal Reserve rate cut, mortgage rates remain below the 52-week average of 6.71%, which is driving renewed interest in purchase applications and refinancing activities [6] Industry Performance - The Zacks REIT and Equity Trust industry ranks 185, placing it in the bottom 24% of 243 Zacks industries, indicating underperformance in the near term [7] - The industry's current-year earnings estimate has decreased by 8.1% over the last year, reflecting a negative earnings outlook [8] - Over the past year, the industry has declined by 6.2%, while the broader Zacks Finance sector rose by 17.1% and the S&P 500 grew by 18.2% [10] Valuation Metrics - The industry is currently trading at a trailing 12-month price-to-book (P/BV) ratio of 1.00X, compared to the S&P 500's 8.8X [13] - The Zacks Finance sector's trailing 12-month P/BV is 4.32X, indicating that the REIT and Equity Trust industry is trading at a significant discount [15] Company Highlights - **Annaly Capital Management (NLY)**: Focuses on prudent asset selection and effective capital allocation, with a diversified investment strategy that includes Agency MBSs and non-agency assets [17][18]. The company's 2025 earnings are estimated at $2.89 per share, reflecting a 7% year-over-year increase [19] - **Apollo Commercial Real Estate Finance (ARI)**: Engages in originating and managing commercial mortgage loans, benefiting from a robust origination pipeline and disciplined capital recycling strategy [22][23]. The company's 2025 earnings estimates are $1.04 per share, indicating a 141.9% year-over-year increase [24] - **Ellington Financial (EFC)**: Invests in a diverse array of financial assets, including residential and commercial mortgage loans, and employs dynamic hedging strategies to manage risks [27][29]. The company's 2025 earnings estimates are $1.74 per share, reflecting a 19.2% year-over-year growth [30]

In the latest close session, Invesco Mortgage Capital (IVR) was up +2.91% at $7.78. The stock's change was more than the S&P 500's daily gain of 0.34%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.42%. Shares of the real estate investment trust witnessed a loss of 2.58% over the previous month, trailing the performance of the Finance sector with its gain of 1.52%, and the S&P 500's gain of 3.54%.Market participants will be closely following the fin ...

Core Viewpoint - Annaly Capital Management (NLY) is experiencing mixed performance, with a recent stock price increase but underperformance over the past month compared to broader market indices. The upcoming earnings report is anticipated to show significant growth in both EPS and revenue compared to the previous year [1][2][3]. Company Performance - In the latest trading session, NLY closed at $21.04, reflecting a +1.06% increase from the previous day, outperforming the S&P 500's daily gain of 0.59% [1] - Over the past month, NLY shares have depreciated by 0.81%, underperforming the Finance sector's gain of 1.64% and the S&P 500's gain of 2.72% [1] Earnings Expectations - The upcoming earnings report is expected to show an EPS of $0.72, indicating a 9.09% growth year-over-year [2] - Revenue is projected to be $447 million, representing a substantial increase of 3235.82% compared to the same quarter last year [2] Annual Projections - For the annual period, Zacks Consensus Estimates predict earnings of $2.89 per share and revenue of $1.4 billion, reflecting increases of +7.04% and +463.37% respectively from the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for NLY are crucial as they reflect short-term business trends, with positive revisions indicating a favorable outlook on business health and profitability [4] - The Zacks Rank system, which incorporates these estimate changes, currently ranks NLY at 3 (Hold) [6] Valuation Metrics - NLY is trading at a Forward P/E ratio of 7.2, which is below the industry average Forward P/E of 8.79 [7] - The company has a PEG ratio of 4.93, compared to the average PEG ratio of 3.95 for REIT and Equity Trust stocks [8] Industry Context - The REIT and Equity Trust industry is currently ranked 205 out of over 250 industries, placing it in the bottom 18% of all industries [8] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

In the latest close session, Invesco Mortgage Capital (IVR) was up +1.38% at $7.37. The stock's performance was ahead of the S&P 500's daily loss of 0.5%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.5%. Shares of the real estate investment trust have depreciated by 6.31% over the course of the past month, underperforming the Finance sector's gain of 1.4%, and the S&P 500's gain of 2.74%.The investment community will be paying close attention to the earnings performance of Inves ...

Core Viewpoint - Investors in Redwood Trust, Inc. (RWT) should closely monitor stock movements due to significant implied volatility in the options market, particularly the Oct. 17, 2025 $3 Put option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future stock movement, with high levels suggesting potential for a significant price change or an upcoming event that could trigger a rally or sell-off [2] - The current high implied volatility for Redwood Trust options may signal a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4] Group 2: Analyst Sentiment - Redwood Trust is currently rated Zacks Rank 4 (Sell) within the REIT and Equity Trust industry, which is in the bottom 18% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have increased earnings estimates for the current quarter, while three have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from 20 cents per share to 14 cents [3]

Group 1 - American Healthcare REIT (AHR) has returned 49.4% year-to-date, significantly outperforming the average Finance sector gain of 13% [4] - AHR is part of the Finance sector, which includes 869 individual stocks and currently holds a Zacks Sector Rank of 1, indicating strong performance relative to other sectors [2] - The Zacks Rank system, which emphasizes earnings estimates and revisions, currently gives AHR a Zacks Rank of 2 (Buy), suggesting a positive earnings outlook [3] Group 2 - The Zacks Consensus Estimate for AHR's full-year earnings has increased by 3.5% over the past quarter, reflecting improved analyst sentiment [4] - AHR is categorized under the REIT and Equity Trust - Other industry, which consists of 99 companies and has an average gain of 4.7% this year, further highlighting AHR's strong performance [6] - Apollo Commercial Finance (ARI), another Finance stock, has returned 20% year-to-date and has a Zacks Rank of 2 (Buy), indicating it is also performing well within the sector [5][7]

Company Performance - AFC Gamma Inc. reported quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.24 per share, and down from $0.56 per share a year ago, representing an earnings surprise of -37.50% [1] - The company posted revenues of $6.2 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 18.17%, and down from $19.96 million year-over-year [2] - Over the last four quarters, AFC Gamma has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates [2] Stock Performance - AFC Gamma shares have declined approximately 45.3% since the beginning of the year, contrasting with the S&P 500's gain of 10% [3] - The current Zacks Rank for AFC Gamma is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $8.18 million, and for the current fiscal year, it is $0.93 on revenues of $31.62 million [7] - The trend of estimate revisions for AFC Gamma was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The REIT and Equity Trust industry, to which AFC Gamma belongs, is currently in the bottom 19% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Group 1 - Apollo Commercial Finance (ARI) has returned 14.9% year-to-date, outperforming the Finance sector average of 8.5% [4] - The Zacks Rank for Apollo Commercial Finance is 1 (Strong Buy), indicating strong analyst sentiment and a positive earnings outlook [3] - The Zacks Consensus Estimate for ARI's full-year earnings has increased by 2.1% over the past quarter, reflecting improving analyst sentiment [3] Group 2 - Apollo Commercial Finance is part of the REIT and Equity Trust industry, which consists of 33 companies and is currently ranked 181 in the Zacks Industry Rank [6] - The average return for the REIT and Equity Trust industry is 0.6% year-to-date, indicating that ARI is performing significantly better [6] - American Healthcare REIT (AHR), another outperforming stock in the Finance sector, has returned 40.3% year-to-date [4]