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Hercules Capital (HTGC) Gains As Market Dips: What You Should Know

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Hercules Capital (HTGC - Free Report) closed at $16.54 in the latest trading session, marking a +0.43% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.02%. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.12%.

Prior to today's trading, shares of the specialty finance company had gained 15.01% over the past month. This has outpaced the Finance sector's gain of 7.54% and the S&P 500's gain of 5.14% in that time.

Hercules Capital will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2023. In that report, analysts expect Hercules Capital to post earnings of $0.50 per share. This would mark year-over-year growth of 56.25%. Meanwhile, our latest consensus estimate is calling for revenue of $107.87 million, up 49.57% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.94 per share and revenue of $434.83 million. These totals would mark changes of +31.08% and +35.17%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Hercules Capital. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Hercules Capital is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Hercules Capital is currently trading at a Forward P/E ratio of 8.5. Its industry sports an average Forward P/E of 7.4, so we one might conclude that Hercules Capital is trading at a premium comparatively.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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