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Barings BDC (BBDC) Flat As Market Gains: What You Should Know

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In the latest trading session, Barings BDC (BBDC - Free Report) closed at $8.65, marking no change from the previous day. This move lagged the S&P 500's daily gain of 1.15%. Meanwhile, the Dow gained 1.11%, and the Nasdaq, a tech-heavy index, added 11.35%.

Heading into today, shares of the business development company had lost 2.37% over the past month, lagging the Finance sector's gain of 3.75% and the S&P 500's gain of 4.49% in that time.

Wall Street will be looking for positivity from Barings BDC as it approaches its next earnings report date. This 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 should also note any recent changes to analyst estimates for Barings BDC. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

In terms of valuation, Barings BDC is currently trading at a Forward P/E ratio of 7.78. This valuation marks a discount compared to its industry's average Forward P/E of 7.99.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% 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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