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PennantPark (PNNT) Suffers a Larger Drop Than the General Market: Key Insights

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PennantPark (PNNT - Free Report) closed the most recent trading day at $6.71, moving -1.47% from the previous trading session. This change lagged the S&P 500's daily loss of 0.29%. Elsewhere, the Dow saw a downswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.3%.

Shares of the business development company have appreciated by 3.18% over the course of the past month, underperforming the Finance sector's gain of 6.15% and the S&P 500's gain of 4.42%.

Investors will be eagerly watching for the performance of PennantPark in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.23, showcasing a 11.54% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $36.26 million, down 0.25% from the year-ago period.

PNNT's full-year Zacks Consensus Estimates are calling for earnings of $0.94 per share and revenue of $142.22 million. These results would represent year-over-year changes of -6% and -2.16%, respectively.

It is also important to note the recent changes to analyst estimates for PennantPark. 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.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained stagnant within the past month. PennantPark presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that PennantPark has a Forward P/E ratio of 7.26 right now. This valuation marks a discount compared to its industry's average Forward P/E of 7.69.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PNNT in the coming trading sessions, be sure to utilize Zacks.com.


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