American Capital Agency (AGNC) - Bull of the Day

By Zacks | June 12, 2012 AAA

We are changing our long-term recommendation for American Capital Agency (AGNC) from Neutral to Outperform, backed by its strong first quarter 2012 results and a healthy year-over-year earnings and revenue increase. American Capital Agency focuses exclusively on fixed-rate agency securities guaranteed by the U.S. government, which limits its credit risks.



American Capital Agency is also among a selected group of companies that have increased their dividend during the economic crisis. The company paid a total of $1.5 billion in dividends or $20.11 per share since its initial public offering in May 2008.



Our long-term Outperform recommendation on the stock indicates that it would perform well above the broader market. Our target price of $39.00, 6.0X 2012 EPS, reflects this view.
 
To read this article on Zacks.com click here.



You May Also Like

COMPANIES IN THIS ARTICLE
Related Analysis
  1. Investing

    Are These 2015's Most-Promising Small-Cap Stocks?

  2. Mutual Funds & ETFs

    Are These the Top Inverse ETFs of 2015?

  3. Chart Advisor

    These 4 Swing Trades Could Place You in the Money

  4. Investing

    Why These Are 2015's Most-Promising Stocks

  5. Charts & Patterns

    Are These the 10 Best Oil Stocks of 2015?

Trading Center