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Saratoga Investment (SAR) Stock Jumps 5.6%: Will It Continue to Soar?

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Saratoga Investment (SAR - Free Report) shares rallied 5.6% in the last trading session to close at $26.28. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 22.1% gain over the past four weeks.

Saratoga Investment witnessed a rise in share price for the fifth consecutive day. Last week, the company announced a 26% hike in its quarterly dividend to 68 cents per share. Since then, SAR stock has been rallying.

Also, favorable operating backdrop and a steady demand for personalized finance to the U.S. middle-market businesses will keep supporting the company’s financials. These optimistic developments drove the investor sentiments, leading the Saratoga Investment stock higher.

This business development company is expected to post quarterly earnings of $0.66 per share in its upcoming report, which represents a year-over-year change of +24.5%. Revenues are expected to be $23.61 million, up 43.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Saratoga Investment, the consensus EPS estimate for the quarter has been revised 5.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SAR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Saratoga Investment is part of the Zacks Financial - SBIC & Commercial Industry industry. PhenixFIN (PFX - Free Report) , another stock in the same industry, closed the last trading session 0.2% higher at $35.06. PFX has returned -3.1% in the past month.

For PhenixFIN, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.36. This represents a change of -10% from what the company reported a year ago. PhenixFIN currently has a Zacks Rank of #3 (Hold).

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