STELLUS CAPITAL INVESTMENT (SCM) Stock: Buy, Sell, or Hold?
SCM - STELLUS CAPITAL INVESTMENT CORPORATION
$7.13
-0.17 (-2.33%)
▼
5d:
-3.91%
30d:
-15.12%
90d:
-12.08%
WAIT
LOW Confidence
Analysis Updated: Oct 7, 2026 12:00 AM ET
Earnings: Nov 09, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 MIXED SIGNALS: SCM shows conflicting indicators. Wait for confirmation before entering.
📊 MIXED SIGNALS: SCM 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
$16.35
Based on 11.6% avg growth
INTRINSIC VALUE TODAY
$10.15
29.8% Margin of Safety
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 9.1x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SCM is currently trading at $7.13, which is considered oversold relative to its 30-day fair value range of $7.47 to $8.43. From a valuation perspective, the stock is trading at a discount (Forward PE: 6.8) compared to its historical average (9.1). Remarkably, the market is currently pricing in an annual earnings decline of 9.0% over the next few years. This pessimistic expectation contrasts with the company's recent 57.2% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, SCM is in a downtrend. The price is currently testing key support at $7.06. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: SCM scores 34/100 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. Wall Street analysts see significant upside, with an average price target of $10.12 (+42.0%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, SCM is in a downtrend. The price is currently testing key support at $7.06. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: SCM scores 34/100 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. Wall Street analysts see significant upside, with an average price target of $10.12 (+42.0%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$7.47 -
$8.43
Company Quality Score
36/100
(SELL)
Volume Confirmation
HIGH
Confidence Score
57.1%
All Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (34/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 42.0% below Wall St target ($10.12)
- WARNING: Composite score 36/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$7.47 -
$8.43
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$7.06
Resistance Level
$7.83
Current Trend
Downtrend
Technical data as of
Oct 7, 2026
Fundamental Context
Forward P/E (Next Year Est.)
6.83
Wall Street Target
$10.13
(+42.0%)
Revenue Growth (YoY)
-13.2%
Earnings Growth (YoY)
57.2%
Profit Margin
30.7%
Valuation Discount vs History
-9.0% cheaper
PE vs Historical
6.8 vs 9.1
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-9.0%
(market-implied from PE analysis)
1-Year Target
$6.49
(-9%)
2-Year Target
$5.90
(-17%)
3-Year Target
$5.37
(-25%)
3-Yr Target (if PE normalizes)
(PE: 7→9)
$7.16
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 19.7, Growth: 19.2%)
$20.69
(+190%)
Base:
(SPY PE: 6.8, Growth: 19.2%)
$7.17
(+1%)
Bear:
(PE: 5.8, Growth: 19.2%)
$6.10
(-15%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (7x PE), but valuation improves significantly next year (7x PE) as earnings recover.
Trailing PE: 7.16 | Current EPS (TTM): $1.02
Bull Case
$8.22
(+15%)
Analyst growth 2.4%, PE expands to 7.9
Base Case
$7.47
(+5%)
Market implied 2.4%, PE stable at 7.2
Bear Case
$4.96
(-30%)
Severe decline -20.0%, PE contracts to 6.1
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 6.8 to 9.1
Stabilization Target:
$9.50
(+33.2%)
PE Expansion Potential:
+33.2%
Share & Embed Analysis
Last updated: October 08, 2026 6:32 AM ET
Data refreshes hourly during market hours. Next update: 7:32 AM
Data refreshes hourly during market hours. Next update: 7:32 AM
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Technical Signals Check
Is SCM showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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