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Main Street Capital (MAIN) Gains But Lags Market: What You Should Know

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In the latest trading session, Main Street Capital (MAIN) closed at $40.97, marking a +1.64% move from the previous day. This change lagged the S&P 500's 1.92% gain on the day. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.16%.

Heading into today, shares of the investment firm had gained 16.54% over the past month, outpacing the Finance sector's loss of 1.27% and the S&P 500's gain of 1.54% in that time.

Wall Street will be looking for positivity from Main Street Capital as it approaches its next earnings report date. This is expected to be August 4, 2022. The company is expected to report EPS of $0.70, up 12.9% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $81.34 million, up 20.87% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.89 per share and revenue of $333.51 million. These totals would mark changes of +2.85% and +15.38%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Main Street Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Main Street Capital is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Main Street Capital has a Forward P/E ratio of 13.93 right now. This represents a premium compared to its industry's average Forward P/E of 9.6.

Investors should also note that MAIN has a PEG ratio of 1.74 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MAIN's industry had an average PEG ratio of 1.03 as of yesterday's close.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 130, which puts it in the bottom 49% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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


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