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PennantPark (PNNT) Exceeds Market Returns: Some Facts to Consider

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PennantPark (PNNT - Free Report) closed at $6.14 in the latest trading session, marking a +1.66% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.2%. Elsewhere, the Dow saw an upswing of 1.58%, while the tech-heavy Nasdaq appreciated by 1.16%.

Coming into today, shares of the business development company had lost 8.21% in the past month. In that same time, the Finance sector lost 5.07%, while the S&P 500 lost 3.58%.

Investors will be eagerly watching for the performance of PennantPark in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 15, 2023. It is anticipated that the company will report an EPS of $0.22, marking a 57.14% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $33.45 million, up 15.61% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for PennantPark. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.56% higher. PennantPark presently features a Zacks Rank of #1 (Strong Buy).

Digging into valuation, PennantPark currently has a Forward P/E ratio of 6.77. For comparison, its industry has an average Forward P/E of 6.68, which means PennantPark 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 54, which puts it in the top 22% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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