Prospect Capital (PSEC) Gains As Market Dips: What You Should Know

In the latest trading session, Prospect Capital (PSEC) closed at $7.27, marking a +0.14% move from the previous day. This change outpaced the S&P 500's 0.41% loss on the day. Elsewhere, the Dow lost 0.24%, while the tech-heavy Nasdaq lost 0.14%.

Prior to today's trading, shares of the business development company had gained 13.61% over the past month. This has outpaced the Finance sector's gain of 8.53% and the S&P 500's gain of 8.12% in that time.

Wall Street will be looking for positivity from Prospect Capital as it approaches its next earnings report date. On that day, Prospect Capital is projected to report earnings of $0.20 per share, which would represent a year-over-year decline of 4.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $195.6 million, up 15.42% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.96 per share and revenue of $855.03 million. These totals would mark changes of +18.52% and +20.27%, respectively, from last year.

Any recent changes to analyst estimates for Prospect Capital should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Prospect Capital currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Prospect Capital has a Forward P/E ratio of 7.56 right now. Its industry sports an average Forward P/E of 9.81, so we one might conclude that Prospect Capital is trading at a discount comparatively.

The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 19% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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