OFS Capital Upped to Strong Buy on Solid Q3 Earnings - Analyst Blog

Zacks Investment Research upgraded OFS Capital Corporation (OFS) to a Zacks Rank #1 (Strong Buy) on Dec 23, 2014.

Why the Upgrade?

OFS Capital Corporation has been witnessing rising earnings estimates following the announcement of third-quarter 2014 results on Nov 7. Also, the long-term expected earnings growth rate for this stock is 22.6%.

OFS Capital's third-quarter earnings per share came in at 30 cents, beating the Zacks Consensus Estimate by 7.1%. Moreover, the figure was double the prior-year quarter earnings. Results benefited mainly from a rise in net investment income attributable to increases across interest, dividend and fee incomes, partially offset by increases in interest and amortization expenses.

The fair value of total investment portfolio amounted to $266.2 million, up 21% year over year. However, the net asset value deteriorated 1.7% to $14.22 per share. Liquidity improved during the quarter. Cash and cash equivalents increased a robust 110.3% to $14.3 million from the Sep 30, 2013 level.

Over the past 60 days, the Zacks Consensus Estimate for 2014 increased 3.3% to $0.95 per share. For 2015, the Zacks Consensus Estimate increased 7.5% to $1.15 per share over the same time frame.

Other Stocks to Consider    

Some other banking stocks worth considering include FleetCor Technologies, Inc. (FLT), Monroe Capital (MRCC) and Select Bancorp, Inc (SLCT). All these stocks sport a Zacks Rank #1.

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