SCM Stock Analysis: Buy, Sell, or Hold?
SCM - STELLUS CAPITAL INVESTMENT CORPORATION
$8.68
-0.28 (-3.13%)
▼
5d:
-4.93%
30d:
-11.16%
90d:
-13.63%
HOLD
MODERATE Confidence
Analysis Updated: Jun 3, 2026 12:00 AM ET
Earnings: Aug 13, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: SCM shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: SCM shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$10.57
Based on 1.3% avg growth
INTRINSIC VALUE TODAY
$6.56
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 9.8x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SCM is currently trading at $8.68, which is considered oversold relative to its 30-day fair value range of $9.00 to $9.65. From a valuation perspective, the stock is trading at a discount (Forward PE: 8.6) compared to its historical average (9.8). Remarkably, the market is currently pricing in an annual earnings decline of 4.2% 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. Short-term momentum is weak, with the stock down 3.1% recently.
Market Sentiment: SCM has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $10.50 (+21.0%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
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. Short-term momentum is weak, with the stock down 3.1% recently.
Market Sentiment: SCM has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $10.50 (+21.0%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$9.00 -
$9.65
Company Quality Score
58/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
52.4%
All Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (25/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-3.1%)
- BULLISH: Trading 21.0% below Wall St target ($10.50)
Trading Range Analysis
30-Day Trading Range
$9.00 -
$9.65
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 3, 2026
Fundamental Context
Forward P/E (Next Year Est.)
8.58
Wall Street Target
$10.50
(+21.0%)
Revenue Growth (YoY)
-6.6%
Earnings Growth (YoY)
-68.4%
Profit Margin
23.6%
Valuation Discount vs History
-4.2% cheaper
PE vs Historical
8.6 vs 9.8
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-4.2%
(market-implied from PE analysis)
1-Year Target
$8.32
(-4%)
2-Year Target
$7.97
(-8%)
3-Year Target
$7.63
(-12%)
3-Yr Target (if PE normalizes)
(PE: 9→10)
$8.72
(+1%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.9, Growth: -1.4%)
$21.28
(+145%)
Base:
(SPY PE: 8.6, Growth: -1.4%)
$8.33
(-4%)
Bear:
(PE: 7.3, Growth: -1.4%)
$7.08
(-18%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (11x PE), but valuation improves significantly next year (9x PE) as earnings recover.
Trailing PE: 11.00 | Current EPS (TTM): $0.83
Bull Case
$12.25
(+33%)
Analyst growth 21.9%, PE expands to 12.1
Base Case
$11.13
(+21%)
Market implied 21.9%, PE stable at 11.0
Bear Case
$6.21
(-32%)
Severe decline -20.0%, PE contracts to 9.4
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 8.6 to 9.8
Stabilization Target:
$9.92
(+14.3%)
PE Expansion Potential:
+14.3%
Share & Embed Analysis
Last updated: June 03, 2026 8:25 PM ET
Data refreshes hourly during market hours. Next update: 9:25 PM
Data refreshes hourly during market hours. Next update: 9:25 PM
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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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