Carlyle Secured Lending (CGBD) Surges 8.3%: Is This an Indication of Further Gains?

Zacks04-10

Carlyle Secured Lending, Inc. CGBD shares rallied 8.3% in the last trading session to close at $14.71. 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 19.1% loss over the past four weeks.

Carlyle Secured Lending stock rallied, driven by a massive jump in the broad markets. The jump was attributable to President Donald Trump’s announcement of a 90-day tariff pause for the non-retaliating nations. This cheered the investors, driving the CGBD stock higher.

This company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of -20.4%. Revenues are expected to be $37.43 million, down 15.2% 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 Carlyle Secured Lending, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CGBD 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 >>>>

Carlyle Secured Lending is a member of the Zacks Financial - SBIC & Commercial Industry industry. One other stock in the same industry, Saratoga Investment SAR, finished the last trading session 7% higher at $22.96. SAR has returned -8.8% over the past month.

For Saratoga Investment , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.77. This represents a change of -18.1% from what the company reported a year ago. Saratoga Investment currently has a Zacks Rank of #3 (Hold).

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Carlyle Secured Lending, Inc. (CGBD) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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