In the latest trading session, Prospect Capital (PSEC) closed at $6.70, marking a -1.76% move from the previous day. This change lagged the S&P 500's 0.7% loss on the day. Meanwhile, the Dow lost 0.87%, and the Nasdaq, a tech-heavy index, added 2.77%.
Coming into today, shares of the business development company had lost 10.5% in the past month. In that same time, the Finance sector lost 9.19%, while the S&P 500 lost 5.06%.
Investors will be hoping for strength from Prospect Capital as it approaches its next earnings release. The company is expected to report EPS of $0.24, up 9.09% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $225.04 million, up 24.04% from the year-ago period.
PSEC's full-year Zacks Consensus Estimates are calling for earnings of $0.93 per share and revenue of $871.86 million. These results would represent year-over-year changes of +14.81% and +22.64%, respectively.
It is also important to note the recent changes to analyst estimates for Prospect Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 7.92% lower within the past month. Prospect Capital is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Prospect Capital has a Forward P/E ratio of 7.33 right now. This valuation marks a discount compared to its industry's average Forward P/E of 10.17.
The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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