Prospect Capital (PSEC) closed the most recent trading day at $6.89, moving -0.14% from the previous trading session. This change lagged the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.33%.
Heading into today, shares of the business development company had lost 5.48% over the past month, outpacing the Finance sector's loss of 6.53% and lagging the S&P 500's gain of 1.72% in that time.
Investors will be hoping for strength from Prospect Capital as it approaches its next earnings release. In that report, analysts expect Prospect Capital to post earnings of $0.24 per share. This would mark year-over-year growth of 9.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $225.04 million, up 24.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.93 per share and revenue of $871.86 million. These totals would mark changes of +14.81% and +22.64%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Prospect Capital. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Prospect Capital currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Prospect Capital currently has a Forward P/E ratio of 7.42. This valuation marks a discount compared to its industry's average Forward P/E of 10.68.
The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% 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.
Be sure to follow all of these stock-moving metrics, and many 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