SCM Stock Analysis: Buy, Sell, or Hold?
SCM - STELLUS CAPITAL INVESTMENT CORPORATION
$8.15
-0.17 (-2.04%)
▼
5d:
-2.63%
30d:
-7.18%
90d:
-12.83%
BUY
HIGH Confidence
Analysis Updated: Jul 13, 2026 12:00 AM ET
Earnings: Aug 05, 2026
21d
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: SCM trading at deep discount. Market pricing in -5.5% annual earnings decline, creating value opportunity for patient investors.
✅ BUY SIGNAL: SCM trading at deep discount. Market pricing in -5.5% annual earnings decline, creating value opportunity for patient investors.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$10.25
Based on 1.3% avg growth
INTRINSIC VALUE TODAY
$6.36
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 9.5x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SCM is currently trading at $8.15, which is considered oversold relative to its 30-day fair value range of $8.18 to $8.76. From a valuation perspective, the stock is trading at a discount (Forward PE: 8.1) compared to its historical average (9.5). Remarkably, the market is currently pricing in an annual earnings decline of 5.5% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, SCM is in a strong downtrend. The price is currently testing key support at $8.66. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $10.50 (+28.8%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, SCM is in a strong downtrend. The price is currently testing key support at $8.66. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $10.50 (+28.8%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$8.18 -
$8.76
Company Quality Score
58/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 28.8% below Wall St target ($10.50)
Trading Range Analysis
30-Day Trading Range
$8.18 -
$8.76
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$8.66
Resistance Level
$9.32
Current Trend
Strong Downtrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
8.05
Wall Street Target
$10.50
(+28.8%)
Revenue Growth (YoY)
-6.6%
Earnings Growth (YoY)
-68.4%
Profit Margin
23.6%
Valuation Discount vs History
-5.5% cheaper
PE vs Historical
8.1 vs 9.5
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.5%
(market-implied from PE analysis)
1-Year Target
$7.70
(-6%)
2-Year Target
$7.28
(-11%)
3-Year Target
$6.88
(-16%)
3-Yr Target (if PE normalizes)
(PE: 8→10)
$8.11
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: -1.4%)
$21.15
(+160%)
Base:
(SPY PE: 8.1, Growth: -1.4%)
$7.82
(-4%)
Bear:
(PE: 6.8, Growth: -1.4%)
$6.65
(-18%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (10x PE), but valuation improves significantly next year (8x PE) as earnings recover.
Trailing PE: 10.02 | Current EPS (TTM): $0.83
Bull Case
$11.16
(+37%)
Analyst growth 21.9%, PE expands to 11.0
Base Case
$10.14
(+25%)
Market implied 21.9%, PE stable at 10.0
Bear Case
$5.66
(-31%)
Severe decline -20.0%, PE contracts to 8.5
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 8.1 to 9.5
Stabilization Target:
$9.61
(+18.0%)
PE Expansion Potential:
+18.0%
Share & Embed Analysis
Last updated: July 14, 2026 9:18 AM ET
Data refreshes hourly during market hours. Next update: 10:18 AM
Data refreshes hourly during market hours. Next update: 10:18 AM
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Technical Signals Check
Is SCM showing a specific setup today?
Insider Activity (6 Months)
4
Buys
0
Sells
+
Net
INSIDERS BUYING
Recent Transactions
Robert T Ladd
BUY
1700 shares
2026-03-16
Bruce R Bilger
BUY
45490 shares
2026-03-13
Robert T Ladd
BUY
35000 shares
2026-03-13
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