Hercules Capital (HTGC) closed at $16.97 in the latest trading session, marking a -1.45% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.76%. Elsewhere, the Dow saw a downswing of 0.68%, while the tech-heavy Nasdaq depreciated by 1.13%.
Coming into today, shares of the specialty finance company had lost 2.1% in the past month. In that same time, the Finance sector lost 2.02%, while the S&P 500 gained 1.26%.
The upcoming earnings release of Hercules Capital will be of great interest to investors. The company is predicted to post an EPS of $0.49, indicating constancy compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $142.2 million, showing a 2.98% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.95 per share and a revenue of $578.1 million, indicating changes of +2.09% and +8.56%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Hercules Capital. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Hercules Capital is currently a Zacks Rank #3 (Hold).
With respect to valuation, Hercules Capital is currently being traded at a Forward P/E ratio of 8.83. This indicates a premium in contrast to its industry's Forward P/E of 7.98.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 100, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Hercules Capital, Inc. (HTGC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).