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Why Should You Hold Owl Rock Capital (ORCC) in Your Portfolio?
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Owl Rock Capital Corporation has been in investors’ good books for a while now owing to its healthy revenue stream, strong credit performance and a solid portfolio. In fact, it ended the June quarter with investments in 129 portfolio companies with an aggregate fair value of $11.9 billion.
Despite the current situation, the company managed to deploy capital to attractive investments and drive an incremental yield in the portfolio. It continues to seek opportunities in stable, large and recession-resistant businesses.
The stock has witnessed its 2021 and 2022 earnings estimates move 2.6% and 0.8% north, respectively.
This specialty finance company has been witnessing a surge in revenues since its inception in 2015. Its 2016-2020 CAGR of 129.4% is pretty impressive. In the first half of 2021, total investment income rose 19.1% year over year on the back of an expanded investment portfolio. A steady rise in revenues, primarily from the company’s rapidly-growing interest income and growth strategies, is likely to pave the way for long-term growth.
The company continues to take initiatives to curb its borrowing costs. In the second quarter, it gained from favorable conditions in the unsecured bond market.
Owl Rock Capital’s strategic acquisitions have helped it grow over the years. Owl Rock Capital Group and Owl Capital Partners announced their merger with Baltimore Acquisition Corp, a special purpose acquisition company. Owl Rock Capital and Dyal Capital Partners completed their pending business combination to form Blue Owl Capital Inc. All these efforts bode well for the long haul.
On the back of its solvency level, it paid out six special dividends apart from the regular ones in the fourth quarter of 2020. Its dividend yield stands at 8.5%, much higher than its industry's average of 1.5%. This should instill investors’ confidence in the stock.
It flaunts an impressive liquidity level of $2.2 billion.
Price Performance
Shares of the company have gained 32.9% in a year’s time, outperforming the industry's growth of 11.9%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the same space are HoulihanLokey, Inc. (HLI - Free Report) , Moodys Corporation (MCO - Free Report) and Equitable Holdings, Inc. (EQH - Free Report) , each holding a Zacks Rank #2 (Buy) at present.
The bottom-line results of HoulihanLokey, Moodys and Equitable Holdings managed to deliver a trailing four-quarter surprise of 38.3%, 20.4%, and 15.9%, respectively, on average.
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Why Should You Hold Owl Rock Capital (ORCC) in Your Portfolio?
Owl Rock Capital Corporation has been in investors’ good books for a while now owing to its healthy revenue stream, strong credit performance and a solid portfolio. In fact, it ended the June quarter with investments in 129 portfolio companies with an aggregate fair value of $11.9 billion.
Despite the current situation, the company managed to deploy capital to attractive investments and drive an incremental yield in the portfolio. It continues to seek opportunities in stable, large and recession-resistant businesses.
The stock has witnessed its 2021 and 2022 earnings estimates move 2.6% and 0.8% north, respectively.
Now let’s see what makes this presently Zacks Rank #3 (Hold) stock an investor favorite. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This specialty finance company has been witnessing a surge in revenues since its inception in 2015. Its 2016-2020 CAGR of 129.4% is pretty impressive. In the first half of 2021, total investment income rose 19.1% year over year on the back of an expanded investment portfolio. A steady rise in revenues, primarily from the company’s rapidly-growing interest income and growth strategies, is likely to pave the way for long-term growth.
The company continues to take initiatives to curb its borrowing costs. In the second quarter, it gained from favorable conditions in the unsecured bond market.
Owl Rock Capital’s strategic acquisitions have helped it grow over the years. Owl Rock Capital Group and Owl Capital Partners announced their merger with Baltimore Acquisition Corp, a special purpose acquisition company. Owl Rock Capital and Dyal Capital Partners completed their pending business combination to form Blue Owl Capital Inc. All these efforts bode well for the long haul.
On the back of its solvency level, it paid out six special dividends apart from the regular ones in the fourth quarter of 2020. Its dividend yield stands at 8.5%, much higher than its industry's average of 1.5%. This should instill investors’ confidence in the stock.
It flaunts an impressive liquidity level of $2.2 billion.
Price Performance
Shares of the company have gained 32.9% in a year’s time, outperforming the industry's growth of 11.9%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the same space are HoulihanLokey, Inc. (HLI - Free Report) , Moodys Corporation (MCO - Free Report) and Equitable Holdings, Inc. (EQH - Free Report) , each holding a Zacks Rank #2 (Buy) at present.
The bottom-line results of HoulihanLokey, Moodys and Equitable Holdings managed to deliver a trailing four-quarter surprise of 38.3%, 20.4%, and 15.9%, respectively, on average.