Main Street Capital (MAIN) closed at $61.13 in the latest trading session, marking a +1.61% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.83%. Elsewhere, the Dow gained 0.77%, while the tech-heavy Nasdaq added 1.02%.
Shares of the investment firm witnessed a gain of 6.2% over the previous month, beating the performance of the Finance sector with its gain of 3.44%, and the S&P 500's gain of 4.99%.
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The upcoming earnings release of Main Street Capital will be of great interest to investors. The company is expected to report EPS of $0.99, down 1.98% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $137.23 million, up 3.84% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.96 per share and revenue of $550.78 million, indicating changes of -3.18% and +1.8%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Main Street Capital. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.34% higher. At present, Main Street Capital boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Main Street Capital is at present trading with a Forward P/E ratio of 15.19. This indicates a premium in contrast to its industry's Forward P/E of 8.92.
The Financial – SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 232, which puts it in the bottom 7% 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.
