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Main Street Capital (MAIN) Gains As Market Dips: What You Should Know

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In the latest trading session, Main Street Capital (MAIN - Free Report) closed at $40.37, marking a +0.98% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.01%. Elsewhere, the Dow lost 0.23%, while the tech-heavy Nasdaq added 0.97%.

Prior to today's trading, shares of the investment firm had gained 1.81% over the past month. This has lagged the Finance sector's gain of 6.87% and the S&P 500's gain of 6.23% in that time.

Investors will be hoping for strength from Main Street Capital as it approaches its next earnings release, which is expected to be May 4, 2023. In that report, analysts expect Main Street Capital to post earnings of $0.97 per share. This would mark year-over-year growth of 32.88%. Meanwhile, our latest consensus estimate is calling for revenue of $115.09 million, up 44.94% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.90 per share and revenue of $474.74 million. These totals would mark changes of +18.54% and +25.97%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Main Street Capital. These revisions help to show the ever-changing nature of near-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.

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. Main Street Capital currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Main Street Capital has a Forward P/E ratio of 10.24 right now. For comparison, its industry has an average Forward P/E of 6.93, which means Main Street Capital is trading at a premium to the group.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 MAIN in the coming trading sessions, be sure to utilize Zacks.com.


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