Why the Market Dipped But Hercules Capital (HTGC) Gained Today
In the latest market close, Hercules Capital (HTGC) reached $15.30, with a +0.72% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 1.18%. On the other hand, the Dow registered a loss of 0.76%, and the technology-centric Nasdaq decreased by 1.76%.
Shares of the specialty finance company witnessed a loss of 7.04% over the previous month, trailing the performance of the Finance sector with its loss of 5.47% and the S&P 500's loss of 3.35%.
The investment community will be paying close attention to the earnings performance of Hercules Capital in its upcoming release. The company is slated to reveal its earnings on November 2, 2023. The company is forecasted to report an EPS of $0.50, showcasing a 28.21% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $113.22 million, up 34.41% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.04 per share and revenue of $449 million, which would represent changes of +37.84% and +39.57%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Hercules Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 has moved 2.82% higher. Hercules Capital is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Hercules Capital currently has a Forward P/E ratio of 7.44. Its industry sports an average Forward P/E of 6.76, so one might conclude that Hercules Capital is trading at a premium comparatively.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Hercules Capital, Inc. (HTGC) : Free Stock Analysis Report
