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Barings BDC (BBDC) Flat As Market Gains: What You Should Know

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Barings BDC (BBDC - Free Report) closed the most recent trading day at $8.76, making no change from the previous trading session. This change lagged the S&P 500's 1.05% gain on the day. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 9.7%.

Prior to today's trading, shares of the business development company had gained 6.57% over the past month. This has lagged the Finance sector's gain of 7.81% and outpaced the S&P 500's gain of 6.27% in that time.

Barings BDC will be looking to display strength as it nears its next earnings release, which is expected to be February 23, 2023. On that day, Barings BDC is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 17.39%. Meanwhile, our latest consensus estimate is calling for revenue of $62.47 million, up 70.65% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Barings BDC. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Barings BDC is currently a Zacks Rank #3 (Hold).

In terms of valuation, Barings BDC is currently trading at a Forward P/E ratio of 7.87. Its industry sports an average Forward P/E of 8.1, so we one might conclude that Barings BDC is trading at a discount comparatively.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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