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PennantPark (PFLT) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest market close, PennantPark (PFLT - Free Report) reached $11.14, with a -1.42% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.29%. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.3%.

The investment company's stock has climbed by 1.16% in the past month, falling short of the Finance sector's gain of 6.15% and the S&P 500's gain of 4.42%.

Market participants will be closely following the financial results of PennantPark in its upcoming release. On that day, PennantPark is projected to report earnings of $0.33 per share, which would represent a year-over-year decline of 5.71%. Alongside, our most recent consensus estimate is anticipating revenue of $40.24 million, indicating a 16.42% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.26 per share and revenue of $160.51 million. These totals would mark changes of -5.26% and +15.19%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for PennantPark. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PennantPark is currently a Zacks Rank #2 (Buy).

With respect to valuation, PennantPark is currently being traded at a Forward P/E ratio of 8.99. This denotes a discount relative to the industry's average Forward P/E of 11.1.

The Financial - Investment Management industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 26, finds itself in the top 11% echelons 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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