Stellus Capital (SCM) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Stellus Capital (SCM) closed at $13.88, marking a -0.14% move from the previous day. This change lagged the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 0.61%.
Prior to today's trading, shares of the investment company had lost 5.63% over the past month. This has lagged the Finance sector's gain of 6.07% and the S&P 500's gain of 6.1% in that time.
Stellus Capital will be looking to display strength as it nears 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 $25.8 million, up 60.17% from the year-ago period.
SCM's full-year Zacks Consensus Estimates are calling for earnings of $1.86 per share and revenue of $102.5 million. These results would represent year-over-year changes of +34.78% and +36.47%, respectively.
Investors might also notice recent changes to analyst estimates for Stellus Capital. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Stellus Capital currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Stellus Capital is currently trading at a Forward P/E ratio of 7.48. For comparison, its industry has an average Forward P/E of 7.1, 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 34, which puts it in the top 14% 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.
To follow SCM in the coming trading sessions, be sure to utilize Zacks.com.
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Stellus Capital Investment Corporation (SCM) : Free Stock Analysis Report
