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Hercules Capital (HTGC) Stock Slides as Market Rises: Facts to Know Before You Trade

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Hercules Capital (HTGC - Free Report) closed the most recent trading day at $19.13, moving -1.59% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.47%. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.94%.

Shares of the specialty finance company witnessed a gain of 1.99% over the previous month, trailing the performance of the Finance sector with its gain of 2.42%, and the S&P 500's gain of 2.32%.

Investors will be eagerly watching for the performance of Hercules Capital in its upcoming earnings disclosure. In that report, analysts expect Hercules Capital to post earnings of $0.48 per share. This would mark a year-over-year decline of 5.88%. Our most recent consensus estimate is calling for quarterly revenue of $132.41 million, up 5.72% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.92 per share and revenue of $518.05 million, which would represent changes of -4% and +4.96%, respectively, from the prior year.

Any recent changes to analyst estimates for Hercules Capital should also be noted by investors. 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 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.39% higher. Currently, Hercules Capital is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Hercules Capital is currently trading at a Forward P/E ratio of 10.15. This signifies a premium in comparison to the average Forward P/E of 8.69 for its industry.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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