Surging Earnings Estimates Signal Upside for Oaktree Specialty Lending (OCSL) Stock
Oaktree Specialty Lending (OCSL) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimat...
Oaktree Specialty Lending (OCSL) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this specialty finance company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Oaktree Specialty Lending, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.15 per share, which is a change of -11.76% from the year-ago reported number.
Over the last 30 days, the Zacks Consensus Estimate for Oaktree Specialty Lending has increased 7.14% because three estimates have moved higher compared to no negative revisions.
Current-Year Estimate Revisions
For the full year, the company is expected to earn $0.62 per share, representing a year-over-year change of +21.57%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Oaktree Specialty Lending. Over the past month, two estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 10.71%.
Favorable Zacks Rank
The promising estimate revisions have helped Oaktree Specialty Lending earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Investors have been betting on Oaktree Specialty Lending because of its solid estimate revisions, as evident from the stock's 7.8% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.See 3 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Oaktree Specialty Lending Corp. (OCSL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research