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Hercules Technology (HTGC) Flat As Market Gains: What You Should Know

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Hercules Technology (HTGC - Free Report) closed the most recent trading day at $12.49, making no change from the previous trading session. This change lagged the S&P 500's daily gain of 0.36%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq gained 1.91%.

Coming into today, shares of the specialty finance company had lost 18.21% in the past month. In that same time, the Finance sector lost 7.22%, while the S&P 500 gained 1.24%.

Hercules Technology will be looking to display strength as it nears its next earnings release. In that report, analysts expect Hercules Technology to post earnings of $0.45 per share. This would mark year-over-year growth of 50%. Our most recent consensus estimate is calling for quarterly revenue of $101.5 million, up 55.77% from the year-ago period.

HTGC's full-year Zacks Consensus Estimates are calling for earnings of $1.85 per share and revenue of $429.59 million. These results would represent year-over-year changes of +25% and +33.54%, respectively.

It is also important to note the recent changes to analyst estimates for Hercules Technology. These recent revisions tend to reflect the evolving nature of short-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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Hercules Technology is currently a Zacks Rank #2 (Buy).

Digging into valuation, Hercules Technology currently has a Forward P/E ratio of 6.74. This valuation marks a discount compared to its industry's average Forward P/E of 6.92.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% 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.

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


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