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FS KKR Capital (FSK) Gains But Lags Market: What You Should Know

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In the latest trading session, FS KKR Capital (FSK - Free Report) closed at $19.74, marking a +0.71% move from the previous day. This change lagged the S&P 500's 1.15% gain on the day. At the same time, the Dow added 1.11%, and the tech-heavy Nasdaq gained 11.35%.

Prior to today's trading, shares of the business development company had gained 4.03% over the past month. This has outpaced the Finance sector's gain of 3.75% and lagged the S&P 500's gain of 4.49% in that time.

Investors will be hoping for strength from FS KKR Capital as it approaches its next earnings release, which is expected to be February 27, 2023. The company is expected to report EPS of $0.75, up 15.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $431.6 million, up 18.57% from the year-ago period.

Investors should also note any recent changes to analyst estimates for FS KKR 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.

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.

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. FS KKR Capital currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, FS KKR Capital is holding a Forward P/E ratio of 6.54. For comparison, its industry has an average Forward P/E of 7.99, which means FS KKR Capital is trading at a discount to the group.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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