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Main Street Capital (MAIN) Dips More Than Broader Markets: What You Should Know

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Main Street Capital (MAIN - Free Report) closed at $42.39 in the latest trading session, marking a -1.37% move from the prior day. This change lagged the S&P 500's daily loss of 0.93%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq lost 0.17%.

Prior to today's trading, shares of the investment firm had gained 15.07% over the past month. This has outpaced the Finance sector's gain of 3.57% and the S&P 500's gain of 6.31% in that time.

Main Street Capital will be looking to display strength as it nears its next earnings release, which is expected to be August 4, 2022. On that day, Main Street Capital is projected to report earnings of $0.70 per share, which would represent year-over-year growth of 12.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $81.34 million, up 20.87% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.89 per share and revenue of $333.51 million. These totals would mark changes of +2.85% and +15.38%, respectively, from last year.

Any recent changes to analyst estimates for Main Street Capital should also be noted by investors. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Main Street Capital is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Main Street Capital is holding a Forward P/E ratio of 14.85. For comparison, its industry has an average Forward P/E of 10.02, which means Main Street Capital is trading at a premium to the group.

Meanwhile, MAIN's PEG ratio is currently 1.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MAIN's industry had an average PEG ratio of 1.1 as of yesterday's close.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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