Why Annaly Capital Management Is 1 Stock I'd Avoid in 2023
Thanks to its super alluring yield of more than 15%, Annaly Capital Management (NYSE: NLY) is one of the most popular mortgage real estate investment trusts (mREITs) on the market today. Last year was a rough one for mREITs. Rising interest rates increased the cost of borrowing, hurting mREITs' earnings and asset values.
Annaly wasn't spared from the challenges, and it has fallen 25% in the past year. The mREIT may look like an enticing buy considering the stock is down a good deal and its yield is nearly 10 times that of the S&P 500 average. But here's why this is a stock I'd stay away from in 2023.
Assessing a company's growth opportunities and potential risks before buying is an incredibly important part of successful investing. Market conditions are a big factor in what growth opportunities and risks lie ahead and right now market conditions are not favoring Annaly.
Source Fool.com
