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Barings BDC (BBDC) Outpaces Stock Market Gains: What You Should Know

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Barings BDC (BBDC - Free Report) closed at $8.95 in the latest trading session, marking a +1.7% move from the prior day. This change outpaced the S&P 500's 0.34% gain on the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 8.98%.

Coming into today, shares of the business development company had gained 2.21% in the past month. In that same time, the Finance sector gained 3.84%, while the S&P 500 gained 1%.

Barings BDC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.27, up 17.39% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $62.47 million, up 70.65% from the year-ago period.

Any recent changes to analyst estimates for Barings BDC should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Barings BDC currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Barings BDC is currently trading at a Forward P/E ratio of 7.91. This represents a no noticeable deviation compared to its industry's average Forward P/E of 7.91.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% 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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