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Capital Southwest (CSWC) Gains As Market Dips: What You Should Know
Capital Southwest (CSWC - Free Report) closed the most recent trading day at $18.83, moving +0.37% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.44%.
Prior to today's trading, shares of the business development company had gained 9.58% over the past month. This has outpaced the Finance sector's gain of 6.01% and the S&P 500's gain of 4.57% in that time.
Wall Street will be looking for positivity from Capital Southwest as it approaches its next earnings report date. This is expected to be January 30, 2023. On that day, Capital Southwest is projected to report earnings of $0.57 per share, which would represent year-over-year growth of 11.76%. Our most recent consensus estimate is calling for quarterly revenue of $30.12 million, up 35.01% from the year-ago period.
CSWC's full-year Zacks Consensus Estimates are calling for earnings of $2.19 per share and revenue of $111.38 million. These results would represent year-over-year changes of +17.11% and +35.48%, respectively.
It is also important to note the recent changes to analyst estimates for Capital Southwest. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate has moved 0.18% higher within the past month. Capital Southwest is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Capital Southwest currently has a Forward P/E ratio of 8.56. For comparison, its industry has an average Forward P/E of 11.44, which means Capital Southwest is trading at a discount to the group.
The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.