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Main Street Capital (MAIN) Gains As Market Dips: What You Should Know

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In the latest trading session, Main Street Capital (MAIN) closed at $37.25, marking a +1.89% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 0.14%.

Prior to today's trading, shares of the investment firm had gained 1.22% over the past month. This has outpaced the Finance sector's loss of 4.35% and the S&P 500's loss of 3.32% in that time.

Main Street Capital will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.70, up 12.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $81.34 million, up 20.87% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.89 per share and revenue of $333.51 million, which would represent changes of +2.85% and +15.38%, respectively, from the prior year.

Any recent changes to analyst estimates for Main Street Capital should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Main Street Capital is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that Main Street Capital has a Forward P/E ratio of 12.64 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.61.

Also, we should mention that MAIN has a PEG ratio of 1.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MAIN's industry had an average PEG ratio of 0.97 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 102, which puts it in the top 41% 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 MAIN in the coming trading sessions, be sure to utilize Zacks.com.


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