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Prospect Capital (PSEC) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Prospect Capital (PSEC - Free Report) closed at $7.34, marking a -1.34% move from the previous day. This move lagged the S&P 500's daily gain of 0.56%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, lost 0.03%.

Heading into today, shares of the business development company had gained 15.53% over the past month, outpacing the Finance sector's gain of 7.74% and the S&P 500's gain of 4.72% in that time.

Prospect Capital will be looking to display strength as it nears its next earnings release. In that report, analysts expect Prospect Capital to post earnings of $0.20 per share. This would mark a year-over-year decline of 4.76%. Meanwhile, our latest consensus estimate is calling for revenue of $195.6 million, up 15.42% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.96 per share and revenue of $855.03 million. These totals would mark changes of +18.52% and +20.27%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Prospect Capital. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Prospect Capital is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Prospect Capital has a Forward P/E ratio of 7.75 right now. This represents a discount compared to its industry's average Forward P/E of 9.48.

The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% 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.

To follow PSEC in the coming trading sessions, be sure to utilize Zacks.com.


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