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Prospect Capital (PSEC) Gains But Lags Market: What You Should Know
In the latest trading session, Prospect Capital (PSEC - Free Report) closed at $7.51, marking a +0.67% move from the previous day. This move lagged the S&P 500's daily gain of 1.29%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, lost 4.94%.
Heading into today, shares of the business development company had gained 5.22% over the past month, outpacing the Finance sector's gain of 4.46% and lagging the S&P 500's gain of 5.64% in that time.
Prospect Capital will be looking to display strength as it nears its next earnings release. In that report, analysts expect Prospect Capital to post earnings of $0.26 per share. This would mark year-over-year growth of 18.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $226.22 million, up 28.99% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.01 per share and revenue of $898.11 million. These totals would mark changes of +24.69% and +26.33%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Prospect Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Prospect Capital currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Prospect Capital is currently trading at a Forward P/E ratio of 7.39. For comparison, its industry has an average Forward P/E of 12.15, which means Prospect Capital 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 38, putting it in the top 16% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.