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Gladstone Capital (GLAD) Gains But Lags Market: What You Should Know

Gladstone Capital (GLAD) closed the most recent trading day at $9.82, moving +0.72% from the previous trading session. This move lagged the S&P 500's daily gain of 0.75%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 10.36%.

Prior to today's trading, shares of the real estate investment trust had lost 0.91% over the past month. This has was narrower than the Finance sector's loss of 3.71% and the S&P 500's loss of 5.98% in that time.

Investors will be hoping for strength from Gladstone Capital as it approaches its next earnings release. On that day, Gladstone Capital is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 14.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.76 million, up 16.02% 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 $78.21 million. These totals would mark changes of +2.13% and +23.85%, respectively, from last year.

Any recent changes to analyst estimates for Gladstone Capital should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. Gladstone Capital is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Gladstone Capital is currently trading at a Forward P/E ratio of 10.13. This valuation marks a premium compared to its industry's average Forward P/E of 7.6.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 9, which puts it in the top 4% 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.

To follow GLAD in the coming trading sessions, be sure to utilize Zacks.com.

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Gladstone Capital Corporation (GLAD) : Free Stock Analysis Report

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