Stellus Capital SCM shares rallied 7.1% in the last trading session to close at $12.52. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 15.4% loss over the past four weeks.
Stellus Capital stock surged, driven by a massive jump in the broad markets. The jump was fueled by President Donald Trump’s announcement of a 90-day tariff pause for the non-retaliating nations. This cheered the investors, driving the SCM stock higher.
This investment company is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of -15.9%. Revenues are expected to be $26.26 million, up 1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Stellus Capital, the consensus EPS estimate for the quarter has been revised 4.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SCM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Stellus Capital belongs to the Zacks Financial - SBIC & Commercial Industry industry. Another stock from the same industry, WhiteHorse Finance WHF, closed the last trading session 5.4% higher at $9.14. Over the past month, WHF has returned -11.7%.
WhiteHorse's consensus EPS estimate for the upcoming report has changed -11.1% over the past month to $0.33. Compared to the company's year-ago EPS, this represents a change of -29.8%. WhiteHorse currently boasts a Zacks Rank of #4 (Sell).
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Stellus Capital Investment Corporation (SCM): Free Stock Analysis Report WhiteHorse Finance, Inc. (WHF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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