Prospect Capital (PSEC - Free Report) closed the most recent trading day at $6.82, moving -0.58% from the previous trading session. This move was narrower than the S&P 500's daily loss of 3.24%. At the same time, the Dow lost 3.1%, and the tech-heavy Nasdaq lost 3.8%.
Heading into today, shares of the business development company had gained 2.39% over the past month, lagging the Finance sector's gain of 2.45% and the S&P 500's gain of 2.73% in that time.
PSEC will be looking to display strength as it nears its next earnings release, which is expected to be February 6, 2019. In that report, analysts expect PSEC to post earnings of $0.22 per share. This would mark year-over-year growth of 10%. Meanwhile, our latest consensus estimate is calling for revenue of $183.72 million, up 13.13% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.95 per share and revenue of $755.51 million. These totals would mark changes of +20.25% and +14.85%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PSEC. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 11.77% higher within the past month. PSEC currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note PSEC's current valuation metrics, including its Forward P/E ratio of 7.22. This valuation marks a discount compared to its industry's average Forward P/E of 11.18.
The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% 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.
To follow PSEC in the coming trading sessions, be sure to utilize Zacks.com.