Prospect Capital (PSEC) Dips More Than Broader Markets: What You Should Know
Prospect Capital (PSEC) closed at $6.66 in the latest trading session, marking a -1.19% move from the prior day. This change lagged the S&P 500's daily loss of 0.53%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.94%.
Prior to today's trading, shares of the business development company had gained 3.06% over the past month. This has outpaced the Finance sector's gain of 1.28% and the S&P 500's loss of 1.47% in that time.
Wall Street will be looking for positivity from PSEC as it approaches its next earnings report date. This is expected to be February 6, 2019. In that report, analysts expect PSEC to post earnings of $0.22 per share. This would mark year-over-year growth of 10%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $183.72 million, up 13.13% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.95 per share and revenue of $755.51 million, which would represent changes of +20.25% and +14.85%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PSEC. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. PSEC is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that PSEC has a Forward P/E ratio of 7.09 right now. This represents a discount compared to its industry's average Forward P/E of 10.29.
The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 249, which puts it in the bottom 3% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
