2024-07-10 09:00:48 ET
Summary
- Notwithstanding the market's pessimism, AGNC Investment Corp. stock has performed reasonably well recently.
- Fed Chair Jerome Powell didn't send "negative" signals in his congressional testimony.
- The market has priced in the first cut in September 2024, and Powell has not rejected the market's prognostications outright.
- AGNC's upcoming earnings call on July 23 will be scrutinized for clues on the adjustment of AGNC's hedging strategies.
- I argue why AGNC's relative undervaluation is well-poised to benefit as the Fed moves into cutting interest rates. Read on.
AGNC: Powell's Testimony Is Well-Received
AGNC Investment Corp. ( AGNC ) investors have performed reasonably well since my previous bullish AGNC update in early April 2024. I urged investors to focus on the mREIT's highly appealing dividend yield, which should provide robust valuation support. In addition, a more normalized macro environment as the Fed rate hikes reach their peak should also help maintain buying sentiments. Consequently, AGNC has not disappointed, as it has delivered a total return of more than 4% since then....
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AGNC Investment Corp.: The Fed Sets The Tone For A Further Recovery