Prospect Capital (PSEC) Gains But Lags Market: What You Should Know
Prospect Capital (PSEC) closed the most recent trading day at $7.06, moving +0.71% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.28%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 5.02%.
Prior to today's trading, shares of the business development company had lost 2.5% over the past month. This has lagged the Finance sector's loss of 1.02% and was narrower than the S&P 500's loss of 4.61% in that time.
Investors will be hoping for strength from Prospect Capital as it approaches its next earnings release. On that day, Prospect Capital is projected to report earnings of $0.26 per share, which would represent year-over-year growth of 18.18%. Our most recent consensus estimate is calling for quarterly revenue of $226.22 million, up 28.99% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.01 per share and revenue of $898.11 million, which would represent changes of +24.69% and +26.33%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Prospect Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Prospect Capital is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Prospect Capital's current valuation metrics, including its Forward P/E ratio of 6.94. This valuation marks a discount compared to its industry's average Forward P/E of 11.08.
The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 42% 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.
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Prospect Capital Corporation (PSEC) : Free Stock Analysis Report
