Oaktree Specialty Lending (OCSL) Stock Sinks As Market Gains: What You Should Know
Oaktree Specialty Lending (OCSL) closed the most recent trading day at $7.10, moving -0.7% from the previous trading session. This change lagged the S&P 500's 0.4% gain on the day. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 1.1%.
Prior to today's trading, shares of the specialty finance company had gained 5.46% over the past month. This has outpaced the Finance sector's gain of 3.81% and the S&P 500's loss of 0.01% in that time.
Investors will be hoping for strength from Oaktree Specialty Lending as it approaches its next earnings release, which is expected to be February 7, 2023. The company is expected to report EPS of $0.20, up 17.65% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $74.5 million, up 14.71% from the year-ago period.
OCSL's full-year Zacks Consensus Estimates are calling for earnings of $0.81 per share and revenue of $312.63 million. These results would represent year-over-year changes of +14.08% and +19.09%, respectively.
Investors should also note any recent changes to analyst estimates for Oaktree Specialty Lending. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Oaktree Specialty Lending is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Oaktree Specialty Lending is currently trading at a Forward P/E ratio of 8.85. Its industry sports an average Forward P/E of 9.18, so we one might conclude that Oaktree Specialty Lending is trading at a discount comparatively.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Oaktree Specialty Lending Corp. (OCSL) : Free Stock Analysis Report
