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Main Street Capital (MAIN) Outpaces Stock Market Gains: What You Should Know

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Main Street Capital (MAIN) closed at $35.81 in the latest trading session, marking a +1.96% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.46%. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq lost 0.17%.

Coming into today, shares of the investment firm had lost 10.29% in the past month. In that same time, the Finance sector lost 6.38%, while the S&P 500 lost 6.94%.

Investors will be hoping for strength from Main Street Capital as it approaches its next earnings release. On that day, Main Street Capital is projected to report earnings of $0.70 per share, which would represent year-over-year growth of 12.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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. 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. 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.

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 currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Main Street Capital is currently trading at a Forward P/E ratio of 12.14. This represents a premium compared to its industry's average Forward P/E of 9.78.

It is also worth noting that MAIN currently has a PEG ratio of 1.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MAIN's industry had an average PEG ratio of 1.04 as of yesterday's close.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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