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Barings BDC (BBDC) Gains But Lags Market: What You Should Know

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Barings BDC (BBDC - Free Report) closed the most recent trading day at $8.60, moving +0.7% from the previous trading session. This move lagged the S&P 500's daily gain of 1.1%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 6.59%.

Prior to today's trading, shares of the business development company had gained 5.43% over the past month. This has lagged the Finance sector's gain of 6.37% and outpaced the S&P 500's gain of 4.58% in that time.

Investors will be hoping for strength from Barings BDC as it approaches its next earnings release, which is expected to be February 23, 2023. The company is expected to report EPS of $0.27, up 17.39% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $62.47 million, up 70.65% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Barings BDC. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Barings BDC is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Barings BDC has a Forward P/E ratio of 7.68 right now. For comparison, its industry has an average Forward P/E of 7.96, which means Barings BDC is trading at a discount to the group.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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 BBDC in the coming trading sessions, be sure to utilize Zacks.com.


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