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FS KKR Capital (FSK) Gains But Lags Market: What You Should Know

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FS KKR Capital (FSK - Free Report) closed at $18.07 in the latest trading session, marking a +1.06% move from the prior day. This change lagged the S&P 500's 2.65% gain on the day. At the same time, the Dow added 1.86%, and the tech-heavy Nasdaq gained 0.24%.

Coming into today, shares of the business development company had lost 10.73% in the past month. In that same time, the Finance sector lost 8.17%, while the S&P 500 lost 8.99%.

Wall Street will be looking for positivity from FS KKR Capital as it approaches its next earnings report date. In that report, analysts expect FS KKR Capital to post earnings of $0.72 per share. This would mark year-over-year growth of 12.5%. Meanwhile, our latest consensus estimate is calling for revenue of $404.28 million, up 12.3% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.86 per share and revenue of $1.59 billion, which would represent changes of +7.52% and +47.49%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for FS KKR Capital. 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 company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant within the past month. FS KKR Capital is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note FS KKR Capital's current valuation metrics, including its Forward P/E ratio of 6.26. This represents a discount compared to its industry's average Forward P/E of 8.65.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 138, putting it in the bottom 46% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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