Fidus Investment (FDUS) shares rallied 7.9% in the last trading session to close at $18.69. 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 19.6% loss over the past four weeks.
Fidus Investment stock surged amid a broad market rally, spurred by President Donald Trump’s announcement of a 90-day tariff pause for non-retaliating nations. The news boosted investor confidence, fueling a sharp uptick in FDUS shares.
This closed-end investment company is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of -10.2%. Revenues are expected to be $35.08 million, up 1.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Fidus Investment, the consensus EPS estimate for the quarter has been revised 1.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on FDUS 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 >>>>
Fidus Investment is a member of the Zacks Financial - SBIC & Commercial Industry industry. One other stock in the same industry, Main Street Capital (MAIN), finished the last trading session 7.7% higher at $52.94. MAIN has returned -11.9% over the past month.
For Main Street Capital , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1. This represents a change of -4.8% from what the company reported a year ago. Main Street Capital currently has a Zacks Rank of #4 (Sell).
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This article originally published on Zacks Investment Research (zacks.com).
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