P/E Ratio: 8X
Forward dividend yield: 15.8%
Apollo Investment shares are down nearly 28% in the past year, but they've caught a bounce to $7.44 after scraping a 52-week low of $6.80 on Tuesday. Another BDC facing worries about bad loans, Apollo Investment is expected to report its fiscal second-quarter results on Nov. 3, and the average estimate of analysts polled by Thomson Reuters is for a profit of 24 cents a share in the September-ended quarter on revenue of $94.2 million.
The company has fallen short of Wall Street's consensus view in five of the past eight quarters, and the majority of sell-side analysts are in wait-and-see mode on the stock with 8 of 14 ratings at hold and the median 12-month price target at $11.Ladenburg Thalmann issued an outlook for the BDCs in mid-September, saying it's "generally positive on the sector because demand remains consistent and because we are not of the opinion that the U.S. economy will enter into a recession." The firm lists Apollo Investment as one of the more aggressive BDCs that it covers, along with Triangle Capital (TCAP) and Ares Capital (ARCC).
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