Prospect Capital Preferred Stock Buy Hold or Sell Recommendation
| PSEC-PA Preferred Stock | 19.15 0.10 0.52% |
Assuming the 90 days trading horizon and your conservative risk appetite, our recommendation regarding Prospect Capital is 'Strong Sell'. Macroaxis provides Prospect Capital buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding PSEC-PA positions.
Check out Prospect Capital Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Prospect Preferred Stock refer to our How to Trade Prospect Preferred Stock guide. In addition, we conduct extensive research on individual companies such as Prospect and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Prospect Capital. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Prospect |
Execute Prospect Capital Buy or Sell Advice
The Prospect recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Prospect Capital. Macroaxis does not own or have any residual interests in Prospect Capital or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Prospect Capital's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Insignificant | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Quite High | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Prospect Capital Trading Alerts and Improvement Suggestions
| Prospect Capital has high likelihood to experience some financial distress in the next 2 years | |
| Net Loss for the year was (101.64 M) with profit before overhead, payroll, taxes, and interest of 852.21 M. | |
| Prospect Capital generates negative cash flow from operations |
Prospect Capital Returns Distribution Density
The distribution of Prospect Capital's historical returns is an attempt to chart the uncertainty of Prospect Capital's future price movements. The chart of the probability distribution of Prospect Capital daily returns describes the distribution of returns around its average expected value. We use Prospect Capital price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Prospect Capital returns is essential to provide solid investment advice for Prospect Capital.
| Mean Return | 0.01 | Value At Risk | -3.94 | Potential Upside | 3.21 | Standard Deviation | 2.18 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Prospect Capital historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Prospect Capital Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Prospect Capital or Capital Markets sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Prospect Capital's price will be affected by overall preferred stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Prospect preferred stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.02 | |
β | Beta against Dow Jones | 0.19 | |
σ | Overall volatility | 2.06 | |
Ir | Information ratio | -0.06 |
Prospect Capital Volatility Alert
Prospect Capital currently demonstrates below-average downside deviation. It has Information Ratio of -0.06 and Jensen Alpha of -0.02. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Prospect Capital's preferred stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Prospect Capital's preferred stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Prospect Capital Fundamentals Vs Peers
Comparing Prospect Capital's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Prospect Capital's direct or indirect competition across all of the common fundamentals between Prospect Capital and the related equities. This way, we can detect undervalued stocks with similar characteristics as Prospect Capital or determine the preferred stocks which would be an excellent addition to an existing portfolio. Peer analysis of Prospect Capital's fundamental indicators could also be used in its relative valuation, which is a method of valuing Prospect Capital by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Prospect Capital to competition |
| Fundamentals | Prospect Capital | Peer Average |
| Return On Equity | -0.0205 | -0.31 |
| Return On Asset | 0.0441 | -0.14 |
| Profit Margin | (0.12) % | (1.27) % |
| Operating Margin | 0.67 % | (5.51) % |
| Current Valuation | 10.31 B | 16.62 B |
| Shares Owned By Insiders | 0.85 % | 10.09 % |
| Shares Owned By Institutions | 20.83 % | 39.21 % |
| Number Of Shares Shorted | 2.66 K | 4.71 M |
| Revenue | (60.9 M) | 9.43 B |
| Gross Profit | 852.21 M | 27.38 B |
| EBITDA | (101.64 M) | 3.9 B |
| Net Income | (101.64 M) | 570.98 M |
| Total Debt | 2.58 B | 5.32 B |
| Book Value Per Share | 9.24 X | 1.93 K |
| Cash Flow From Operations | (795.34 M) | 971.22 M |
| Short Ratio | 0.31 X | 4.00 X |
| Earnings Per Share | 2.11 X | 3.12 X |
| Number Of Employees | 10 | 18.84 K |
| Beta | 0.99 | -0.15 |
| Total Asset | 7.86 B | 29.47 B |
| Retained Earnings | (391.32 M) | 9.33 B |
| Z Score | -0.12 | 8.72 |
| Annual Yield | 0.09 % | |
| Net Asset | 7.86 B |
Prospect Capital Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Prospect . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Prospect Capital Buy or Sell Advice
When is the right time to buy or sell Prospect Capital? Buying financial instruments such as Prospect Preferred Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Prospect Capital in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Rentals Thematic Idea Now
Rentals
Companies providing rental and leasing services to public and business. The Rentals theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Rentals Theme or any other thematic opportunities.
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Other Information on Investing in Prospect Preferred Stock
Prospect Capital financial ratios help investors to determine whether Prospect Preferred Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Prospect with respect to the benefits of owning Prospect Capital security.