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Hercules Capital (HTGC) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, Hercules Capital (HTGC - Free Report) reached $21.30, with a -0.75% movement compared to the previous day. This change lagged the S&P 500's 0.16% loss on the day. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw a decrease of 0.06%.

Shares of the specialty finance company witnessed a gain of 6.29% over the previous month, beating the performance of the Finance sector with its loss of 1.47% and the S&P 500's gain of 1.96%.

The investment community will be closely monitoring the performance of Hercules Capital in its forthcoming earnings report. The company is scheduled to release its earnings on August 1, 2024. The company's earnings per share (EPS) are projected to be $0.51, reflecting a 3.77% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $124.99 million, indicating a 7.53% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.06 per share and revenue of $503.7 million, indicating changes of -0.96% and +9.34%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Hercules Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Hercules Capital is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Hercules Capital is holding a Forward P/E ratio of 10.42. This valuation marks a premium compared to its industry's average Forward P/E of 8.3.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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