Prospect Capital (PSEC) Stock: Buy, Sell, or Hold?
PSEC - Prospect Capital Corporation
$2.00
-0.05 (-2.44%)
▼
5d:
-8.68%
30d:
-10.31%
90d:
-9.09%
WAIT
LOW Confidence
Analysis Updated: Oct 2, 2026 12:00 AM ET
Earnings: Nov 05, 2026
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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
$1.29
Based on -10.0% avg growth
INTRINSIC VALUE TODAY
$0.80
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 6.4x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: PSEC is currently trading at $2.00, which is considered oversold relative to its 30-day fair value range of $2.13 to $2.27. From a valuation perspective, the stock is trading at a discount (Forward PE: 5.7) compared to its historical average (6.4). Remarkably, the market is currently pricing in an annual earnings decline of 3.9% 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 $2.00. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: PSEC scores 19/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. 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 $2.00. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: PSEC scores 19/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$2.13 -
$2.27
Company Quality Score
36/100
(SELL)
Volume Confirmation
HIGH
Confidence Score
52.4%
All Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (19/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($2.00)
- WARNING: Composite score 36/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$2.13 -
$2.27
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$2.00
Resistance Level
$2.24
Current Trend
Strong Downtrend
Technical data as of
Oct 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
5.71
Wall Street Target
$2.00
Revenue Growth (YoY)
-6.7%
Earnings Growth (YoY)
-78.2%
Profit Margin
24.0%
Valuation Discount vs History
-3.9% cheaper
PE vs Historical
5.7 vs 6.4
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.9%
(market-implied from PE analysis)
1-Year Target
$1.92
(-4%)
2-Year Target
$1.85
(-8%)
3-Year Target
$1.78
(-11%)
3-Yr Target (if PE normalizes)
(PE: 6→6)
$1.99
(-1%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.4, Growth: -23.9%)
$5.21
(+160%)
Base:
(SPY PE: 5.7, Growth: -23.9%)
$1.46
(-27%)
Bear:
(PE: 4.9, Growth: -23.9%)
$1.24
(-38%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (34x PE), but valuation improves significantly next year (6x PE) as earnings recover.
Trailing PE: 34.17 | Current EPS (TTM): $0.06
Bull Case
$4.51
(+126%)
Analyst growth 100.0%, PE expands to 37.6
Base Case
$4.10
(+105%)
Market implied 100.0%, PE stable at 34.2
Bear Case
$1.39
(-30%)
Severe decline -20.0%, PE contracts to 29.0
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 5.7 to 6.4
Stabilization Target:
$2.24
(+12.0%)
PE Expansion Potential:
+12.0%
Share & Embed Analysis
Last updated: October 02, 2026 11:42 PM ET
Data refreshes hourly during market hours. Next update: 12:42 AM
Data refreshes hourly during market hours. Next update: 12:42 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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