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PennantPark (PFLT) Surpasses Market Returns: Some Facts Worth Knowing

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The latest trading session saw PennantPark (PFLT - Free Report) ending at $11.85, denoting a +1.28% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 1.03%. At the same time, the Dow added 0.87%, and the tech-heavy Nasdaq gained 1.26%.

Prior to today's trading, shares of the investment company had gained 6.56% over the past month. This has outpaced the Finance sector's gain of 6.15% and the S&P 500's gain of 3.01% in that time.

The investment community will be paying close attention to the earnings performance of PennantPark in its upcoming release. The company's earnings per share (EPS) are projected to be $0.31, reflecting a 3.33% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $35.03 million, indicating a 11.78% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $1.22 per share and a revenue of $145.02 million, demonstrating changes of -8.27% and +4.07%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for PennantPark. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, PennantPark is carrying a Zacks Rank of #4 (Sell).

Looking at valuation, PennantPark is presently trading at a Forward P/E ratio of 9.56. This represents a discount compared to its industry's average Forward P/E of 12.38.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 39% 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.

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


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