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Hercules Capital (HTGC) Stock Declines While Market Improves: Some Information for Investors

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In the latest trading session, Hercules Capital (HTGC - Free Report) closed at $20.11, marking a -0.3% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.71% for the day. Meanwhile, the Dow experienced a rise of 1.03%, and the technology-dominated Nasdaq saw an increase of 0.6%.

Heading into today, shares of the specialty finance company had gained 8.56% over the past month, outpacing the Finance sector's loss of 4% and the S&P 500's gain of 6.41% in that time.

The upcoming earnings release of Hercules Capital will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.51, reflecting a 1.92% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $125.8 million, reflecting a 7.76% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.03 per share and revenue of $501.31 million. These totals would mark changes of -2.4% and +8.82%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Hercules Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Hercules Capital is currently a Zacks Rank #4 (Sell).

With respect to valuation, Hercules Capital is currently being traded at a Forward P/E ratio of 9.94. This valuation marks a premium compared to its industry's average Forward P/E of 8.02.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 230, which puts it in the bottom 9% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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