For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Prospect Capital (PSEC - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of PSEC and the rest of the Finance group's stocks.
Prospect Capital is a member of the Finance sector. This group includes 829 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. PSEC is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for PSEC's full-year earnings has moved 3.40% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, PSEC has moved about 2.23% on a year-to-date basis. In comparison, Finance companies have returned an average of -1.52%. This means that Prospect Capital is performing better than its sector in terms of year-to-date returns.
Looking more specifically, PSEC belongs to the Financial - Investment Management industry, a group that includes 49 individual stocks and currently sits at #218 in the Zacks Industry Rank. Stocks in this group have lost about 0.96% so far this year, so PSEC is performing better this group in terms of year-to-date returns.
PSEC will likely be looking to continue its solid performance, so investors interested Finance stocks should continue to pay close attention to the company.