Prospect Capital (PSEC) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Prospect Capital (PSEC) closed at $6.85, marking a +1.03% move from the previous day. This move outpaced the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 1.35%.
Coming into today, shares of the business development company had lost 9.84% in the past month. In that same time, the Finance sector lost 9.49%, while the S&P 500 lost 1.48%.
Prospect Capital will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.24, up 9.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Prospect Capital is currently a Zacks Rank #4 (Sell).
In terms of valuation, Prospect Capital is currently trading at a Forward P/E ratio of 7.29. For comparison, its industry has an average Forward P/E of 10.19, which means Prospect Capital is trading at a discount to the group.
The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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