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Main Street Capital (MAIN) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Main Street Capital (MAIN) closed the most recent trading day at $41.80, moving -0.26% from the previous trading session. This change lagged the S&P 500's 0.16% loss on the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.44%.

Coming into today, shares of the investment firm had gained 2.72% in the past month. In that same time, the Finance sector gained 3.52%, while the S&P 500 gained 4%.

Investors will be hoping for strength from MAIN as it approaches its next earnings release, which is expected to be August 8, 2019. In that report, analysts expect MAIN to post earnings of $0.62 per share. This would mark a year-over-year decline of 6.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $61.33 million, up 2.44% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.54 per share and revenue of $249.99 million. These totals would mark changes of -2.31% and +7.13%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for MAIN. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. MAIN is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that MAIN has a Forward P/E ratio of 16.52 right now. For comparison, its industry has an average Forward P/E of 9.93, which means MAIN is trading at a premium to the group.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 22% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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