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Barings BDC (BBDC) Outpaces Stock Market Gains: What You Should Know

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Barings BDC (BBDC - Free Report) closed at $7.79 in the latest trading session, marking a +0.39% move from the prior day. This change outpaced the S&P 500's 0.17% gain on the day. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.67%.

Coming into today, shares of the business development company had lost 10.19% in the past month. In that same time, the Finance sector lost 8.6%, while the S&P 500 gained 0.25%.

Investors will be hoping for strength from Barings BDC as it approaches its next earnings release. In that report, analysts expect Barings BDC to post earnings of $0.29 per share. This would mark year-over-year growth of 26.09%. Meanwhile, our latest consensus estimate is calling for revenue of $66.55 million, up 52.08% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.16 per share and revenue of $271.82 million. These totals would mark changes of +3.57% and +24.05%, respectively, from last year.

Investors might also notice 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 4.27% higher within the past month. Barings BDC currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Barings BDC has a Forward P/E ratio of 6.69 right now. For comparison, its industry has an average Forward P/E of 7.07, which means Barings BDC is trading at a discount to the group.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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