Stellus Capital (SCM) Outpaces Stock Market Gains: What You Should Know

SCM

Stellus Capital (SCM - Free Report) closed at $14.23 in the latest trading session, marking a +1.14% move from the prior day. This move outpaced the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.14%.

Stellus Capital will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.46, up 58.62% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.71 million, up 59.6% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.85 per share and revenue of $101.88 million. These totals would mark changes of +34.06% and +35.64%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Stellus 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.3% lower. Stellus Capital is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Stellus Capital is currently trading at a Forward P/E ratio of 7.6. This valuation marks a premium compared to its industry's average Forward P/E of 7.19.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% 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.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Free: See Our Top Stock And 4 Runners Up