Stellus Capital (SCM) Gains As Market Dips: What You Should Know
Stellus Capital (SCM) closed at $14.20 in the latest trading session, marking a +0.5% move from the prior day. This move outpaced the S&P 500's daily loss of 0.53%.
Prior to today's trading, shares of the investment company had lost 2.75% over the past month. This has lagged the Finance sector's gain of 3.38% and the S&P 500's gain of 4.86% in that time.
Investors will be hoping for strength from Stellus Capital as it approaches its next earnings release. The company is expected to report EPS of $0.48, up 65.52% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.71 million, up 59.6% from the year-ago period.
SCM's full-year Zacks Consensus Estimates are calling for earnings of $1.85 per share and revenue of $101.88 million. These results would represent year-over-year changes of +34.06% and +35.64%, respectively.
Investors might also notice recent changes to analyst estimates for Stellus Capital. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.3% lower. Stellus Capital is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Stellus Capital has a Forward P/E ratio of 7.63 right now. For comparison, its industry has an average Forward P/E of 7.12, which means Stellus Capital is trading at a premium to the group.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% 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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Stellus Capital Investment Corporation (SCM) : Free Stock Analysis Report
