Mortgage rates are easing up, and the yield curve is finally playing nice, which means the mREIT space just got a whole lot more interesting.

If you’ve been waiting for the right moment to get in on some serious income potential, this is your sign to stop sitting on the fence and start doing the math.

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Real Estate

If you’re wondering why Annaly Capital Management Inc (NYSE: NLY) is back in the conversation, the answer is pretty simple: the rate environment just flipped in its favor, and the market noticed.

Falling mortgage rates improve affordability and kick refinancing back into gear; both are big wins for agency-focused players like NLY. And this isn’t a one-trick pony.

Annaly’s heavy allocation to Agency MBS, paired with a growing mortgage servicing rights platform, gives it multiple ways to win as the cycle turns.

The company has been quietly cleaning house too, by exiting non-core businesses and doubling down on housing finance where risk-adjusted returns actually make sense.

The Spread Is Breathing Again

Easing rate volatility and growing expectations for further cuts are giving mortgage REITs room to stretch.

As spreads stabilize, net interest income has a cleaner runway, and that’s exactly the setup you want to be watching.

Liquidity is solid. The dividend is eye-catching. And in a market desperately hunting for dependable cash flow, that combination is doing a lot of the heavy lifting right now.

The Dividend Is Still Running the Show

Double-digit yields keeping income strategies alive is no small thing.

NLY continues to prioritize liquidity and capital flexibility while keeping those payouts intact… which is the kind of financial discipline that tends to age well.

Defense

Patience finally paid off here. Huntington Ingalls Industries Inc (NYSE: HII) spent a while grinding through post-pandemic supply chain headaches and labor bottlenecks, and now that the smoke has cleared, what’s left is a company executing cleanly with the market’s full attention.

As the largest U.S. naval shipbuilder, handling both nuclear and conventional vessels for the Navy and Coast Guard, HII sits squarely in the path of Washington’s push to modernize and scale its fleet. That’s not a small tailwind.

Revenue has been climbing steadily, margins are improving as projects mature, and hedge funds have been quietly adding exposure.

Recent earnings reflected all of this, with stronger results and expanding order visibility driving a serious run over the past year.

A Growing Backlog Means a Cleaner Revenue Story

Orders keep stacking up, and a bigger backlog translates directly into smoother execution and more predictable margins.

When visibility improves this much, the stock tends to stay in focus, and right now, HII has plenty of both.

After-Market Services: The Revenue That Never Stops

Beyond the headline shipbuilding work, after-market service contracts create a recurring revenue engine that keeps the cash flow story consistent, and consistency is exactly what you want to see.

Consumer Finance

Capital One Financial Corp (NYSE: COF) just had a rough patch in its share price, and depending on who you ask, that’s either a flashing buy signal or a reason to hold your cards a little closer.

This is a company that moves with market sentiment — sometimes sharply — and that volatility is exactly why everyone’s talking.

Some valuation models suggest COF is trading well below what it’s actually worth. Others think it’s still running a little hot.

That gap between narratives is where the opportunity lives, and where your own read on the numbers matters most.

P/E ratios, excess return models, and fair value estimates are all telling slightly different stories right now.

The question isn’t which one is right — it’s which one aligns with your timeframe and risk tolerance. Capital One has reignited the debate, and that alone makes it worth a closer look this week.

Short-Term Pain, Long-Term Potential?

The recent pullback has created a real gap between where the stock is trading and what long-term fundamentals suggest it’s worth.

That gap is either an opportunity or a warning, and the answer depends entirely on your lens.

Pick Your Metric, Play Your Angle

Excess returns, P/E ratios, and custom fair value models are each pointing somewhere slightly different.

Looking at all of them together gives you a fuller picture of where the real risk-reward sits, and helps you decide whether now is the moment to swipe right or wait for a better match.

Century Aluminum Co (NASDAQ: CENX) has been building momentum so steadily that it’s almost easy to miss — until you look at the 12-week chart and realize it hasn’t really slowed down.

The stock is hovering near the top of its 52-week range, which hints at a potential breakout for anyone chasing short-term moves.

Strong earnings revisions and broad broker confidence mean both the fundamentals and the sentiment are pointed in the same direction.

When an aluminum producer starts heating up even as metals markets wobble, that’s worth paying attention to.

Deluxe Corp (NYSE: DLX) has been quietly racking up gains — over 6% in the past month — without making a lot of noise about it. EPS revisions and price consensus trends are both tracking upward, suggesting this isn’t just a blip.

The fundamentals back it up: steady revenue, solid earnings outlook, and the rare combination of momentum and measurable strength arriving at the same time.

DLX isn’t just riding a trend right now — it looks like it’s setting one.

OFG Bancorp (NYSE: OFG) isn’t trying to be flashy, and that’s kind of the point.

Cash flow metrics are solid, P/CF and P/S ratios are attractive, and the valuation suggests the market hasn’t fully caught on yet.

For anyone hunting for a financially sound, reasonably priced bank stock with real upside potential and measured downside risk, OFG is making a quiet but compelling case this week.

That's our coverage for today; thanks for reading! Reply to this email with feedback or any value names you'd like us to dig into.

Best Regards,
—Noah Zelvis
Undervalued Edge