Deep Value Plays: The Best Undervalued Stocks to Buy Now

Market Overview:

Multiple distribution days means caution is warranted.

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Recent Recommendations:

Annaly Capital Management: $ NLY

Annaly Capital Management, Inc., a diversified capital manager, engages in mortgage finance. The company invests in agency mortgage-backed securities collateralized by residential mortgages; non-agency residential whole loans and securitized products within the residential and commercial markets; mortgage servicing rights; agency commercial mortgage-backed securities; residential mortgage loans; and agency or private label credit risk transfer securities. It has elected to be taxed as a real estate investment trust (REIT). As a REIT, it is not subject to federal income tax to the extent that it distributes its taxable income to its shareholders

Overview: Annaly is a contrarian play on the normalization of the real estate market as well as the end of the interest rate hiking cycle.

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Valuation:

Price to cash flow is at the lowest point in eight years.

Shares are trading at 3X cashflow.

Strong return on equity of 18%