Zack's ratings are based on valuation. You can have a great company like NRF and garnish a natural rating. They look at companies in comparison to the universe of companies available. All Zack's is really saying is half the companies may do better then NRF and the other worse, that is if it were a universe of three. Perhaps they are just indicating NRF price appreciation is due for a pause as it has come so far so fast.
Having said that I don't think any of the agencies know what they are doing. As for advice, don't want Zack's anymore then I would my mother's.
ps. I purchased shares this week.... likely will flip the lot, but don't care if I do or don't.
I was just listening to the financial news, and a guy was giving his market picks. He didn't name PSEC, but he did name private equity as being his top sector. These will be the two years in which private equity book profits for a decade he said. PSEC isn't quite private equity, but they do have select equity investments .... it's kinda half way between a bank and private equity. Anyway, sounded pretty good.