Prospect Capital (PSEC) Stock: Buy, Sell, or Hold?
PSEC - Prospect Capital Corporation
$2.22
0.04 (1.83%)
â˛
5d:
+1.37%
30d:
-3.06%
90d:
-2.63%
WAIT
LOW Confidence
Analysis Updated: Sep 11, 2026 12:00 AM ET
Earnings: Nov 05, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
âšī¸ NEUTRAL: PSEC is fairly priced but lacks strong directional signals. At -0.6% expected growth, valuation appears fair. Wait for clearer setup or better entry on dips.
âšī¸ NEUTRAL: PSEC is fairly priced but lacks strong directional signals. At -0.6% expected growth, valuation appears fair. Wait for clearer setup or better entry on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$1.31
Based on -10.0% avg growth
INTRINSIC VALUE TODAY
$0.81
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 6.5x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: PSEC is currently trading at $2.22, which is considered slightly low relative to its 30-day fair value range of $2.20 to $2.31. The stock's valuation (Forward PE: 6.3) is in line with its historical norms (6.5). Remarkably, the market is currently pricing in an annual earnings decline of 0.6% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, PSEC is in a strong downtrend. The price is currently testing key support at $2.17. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock scores a mixed 40/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, PSEC is in a strong downtrend. The price is currently testing key support at $2.17. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock scores a mixed 40/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$2.20 -
$2.31
Company Quality Score
45/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
72.4%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BEARISH: Trading above Wall St target ($2.00)
- WARNING: Composite score 44/100 in the bottom quintile â this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$2.20 -
$2.31
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$2.17
Resistance Level
$2.30
Current Trend
Strong Downtrend
Technical data as of
Sep 11, 2026
Fundamental Context
Forward P/E (Next Year Est.)
6.34
Wall Street Target
$2.00
(-9.9%)
Revenue Growth (YoY)
-6.7%
Earnings Growth (YoY)
-78.2%
Profit Margin
24.0%
Valuation Discount vs History
-0.6% cheaper
PE vs Historical
6.3 vs 6.5
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.6%
(market-implied from PE analysis)
1-Year Target
$2.21
(-1%)
2-Year Target
$2.19
(-1%)
3-Year Target
$2.18
(-2%)
3-Yr Target (if PE normalizes)
(PE: 6â7)
$2.23
(+1%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.2, Growth: -23.9%)
$5.15
(+132%)
Base:
(SPY PE: 6.3, Growth: -23.9%)
$1.62
(-27%)
Bear:
(PE: 5.4, Growth: -23.9%)
$1.38
(-38%)
đ
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (36x PE), but valuation improves significantly next year (6x PE) as earnings recover.
Trailing PE: 36.33 | Current EPS (TTM): $0.06
Bull Case
$4.80
(+116%)
Analyst growth 100.0%, PE expands to 40.0
Base Case
$4.36
(+96%)
Market implied 100.0%, PE stable at 36.3
Bear Case
$1.48
(-33%)
Severe decline -20.0%, PE contracts to 30.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
đĄ
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 6.3 to 6.5
Stabilization Target:
$2.28
(+2.5%)
PE Expansion Potential:
+2.5%
Share & Embed Analysis
Last updated: September 12, 2026 8:00 PM ET
Data refreshes hourly during market hours. Next update: 9:00 PM
Data refreshes hourly during market hours. Next update: 9:00 PM
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Technical Signals Check
Is PSEC showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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