Prospect Capital (PSEC) Stock: Buy, Sell, or Hold?
PSEC - Prospect Capital Corporation
$1.49
0.02 (1.36%)
▲
5d:
-8.59%
30d:
-31.34%
90d:
-29.72%
WAIT
LOW Confidence
Analysis Updated: Oct 22, 2026 12:00 AM ET
Earnings: Nov 05, 2026
12d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 MIXED SIGNALS: PSEC shows conflicting indicators. Wait for confirmation before entering.
📊 MIXED SIGNALS: PSEC shows conflicting indicators. Wait for confirmation before entering.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$1.27
Based on -10.0% avg growth
INTRINSIC VALUE TODAY
$0.79
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 6.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: PSEC is currently trading at $1.49, which is considered oversold relative to its 30-day fair value range of $1.65 to $2.19. From a valuation perspective, the stock is trading at a discount (Forward PE: 4.3) compared to its historical average (6.3). Remarkably, the market is currently pricing in an annual earnings decline of 12.4% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, PSEC is in a strong downtrend. Immediate support is located at $1.43, while resistance sits at $1.83.
Market Sentiment: PSEC scores 60/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $2.00 (+34.2%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, PSEC is in a strong downtrend. Immediate support is located at $1.43, while resistance sits at $1.83.
Market Sentiment: PSEC scores 60/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $2.00 (+34.2%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$1.65 -
$2.19
Company Quality Score
53/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
90.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 34.2% below Wall St target ($2.00)
- WARNING: Composite score 53/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$1.65 -
$2.19
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$1.43
Resistance Level
$1.83
Current Trend
Strong Downtrend
Technical data as of
Oct 22, 2026
Fundamental Context
Forward P/E (Next Year Est.)
4.26
Wall Street Target
$2.00
(+34.2%)
Revenue Growth (YoY)
-6.7%
Earnings Growth (YoY)
-78.2%
Profit Margin
24.0%
Valuation Discount vs History
-12.4% cheaper
PE vs Historical
4.3 vs 6.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-12.4%
(market-implied from PE analysis)
1-Year Target
$1.34
(-10%)
2-Year Target
$1.21
(-19%)
3-Year Target
$1.09
(-27%)
3-Yr Target (if PE normalizes)
(PE: 4→6)
$1.61
(+8%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 19.9, Growth: -23.9%)
$5.07
(+240%)
Base:
(SPY PE: 4.3, Growth: -23.9%)
$1.09
(-27%)
Bear:
(PE: 3.6, Growth: -23.9%)
$0.92
(-38%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (25x PE), but valuation improves significantly next year (4x PE) as earnings recover.
Trailing PE: 24.50 | Current EPS (TTM): $0.06
Bull Case
$3.23
(+117%)
Analyst growth 100.0%, PE expands to 27.0
Base Case
$2.94
(+97%)
Market implied 100.0%, PE stable at 24.5
Bear Case
$1.00
(-33%)
Severe decline -20.0%, PE contracts to 20.8
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 4.3 to 6.3
Stabilization Target:
$2.20
(+48.0%)
PE Expansion Potential:
+48.0%
Share & Embed Analysis
Last updated: October 23, 2026 3:45 AM ET
Data refreshes hourly during market hours. Next update: 4:45 AM
Data refreshes hourly during market hours. Next update: 4:45 AM
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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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