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Oaktree Specialty Lending (OCSL) Outpaces Stock Market Gains: What You Should Know

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Oaktree Specialty Lending (OCSL - Free Report) closed at $20.38 in the latest trading session, marking a +1.85% move from the prior day. This change outpaced the S&P 500's 1.05% gain on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 9.7%.

Prior to today's trading, shares of the specialty finance company had lost 4.45% over the past month. This has lagged the Finance sector's gain of 7.81% and the S&P 500's gain of 6.27% in that time.

Wall Street will be looking for positivity from Oaktree Specialty Lending as it approaches its next earnings report date. This is expected to be February 7, 2023. On that day, Oaktree Specialty Lending is projected to report earnings of $0.57 per share, which would represent year-over-year growth of 11.76%. Meanwhile, our latest consensus estimate is calling for revenue of $72.69 million, up 11.94% from the prior-year quarter.

OCSL's full-year Zacks Consensus Estimates are calling for earnings of $2.39 per share and revenue of $306.75 million. These results would represent year-over-year changes of +12.21% and +16.85%, respectively.

It is also important to note the recent changes to analyst estimates for Oaktree Specialty Lending. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.24% lower. Oaktree Specialty Lending is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Oaktree Specialty Lending currently has a Forward P/E ratio of 8.36. For comparison, its industry has an average Forward P/E of 9.55, which means Oaktree Specialty Lending is trading at a discount to the group.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.

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