Whether in the grocery store or the fuel pump, rising inflation is affecting us all.
In March, the annual inflation rate rose by 8.5% – the highest level in 40 years.
But consumers are not the only ones worried about the price of goods.
Businesses are with us because the rising costs of goods and services are making profits. This leaves many companies struggling in their bottom lines.
I found a company that is here to help.
With the help of chief investment strategist Adam Odel the proprietary of six stock ratings, I found “Strong bulls” Inventory that helps businesses when they need it most:
- It provides capital to small and medium-sized companies in the United States
- Since then it has reached a 52-week low in May 2021, this stock Tips 27% Reach a new 52-week high.
- It is in Top 5% Of all the stocks we rank.
This is why this business development company (BDC) will have a strong performance this year and beyond.
Business confidence has reached a fresh low level amid inflation
The Business Security Index tracks how business owners feel within the current economic environment. It uses production metrics to do this.
Reading an index above 100 indicates high business confidence, while reading below 100 is the opposite.
As can be seen from the chart above, US business confidence has remained above 100 in each of the last 12 months.
However, confidence sinks when businesses face supply chain issues and higher inflation.
We are dangerously close to going below 100 for the first time since June 2020 – right in the midst of the COVID-19 epidemic.
Growth Leader: Gladstone Capital Corp.
When businesses get into financial trouble, they turn to banks or other companies for a fast and reliable source of capital.
But access to bank loans can be extremely limited for small and medium-sized businesses.
Gladstone Capital Corp. (NASDAQ: happy) Here to help.
GLAD is a business development company that provides capital and financing options to small and medium-sized companies in the United States.
Simply put, Gladstone gives loans or capital in exchange for holding companies.
And GLAD’s growth numbers reflect this need for capital services:
The chart above shows the actual and estimated total income for GLAD. Except for a slight decline in 2020 due to COVID-19, its revenues are on an upward trend.
By 2023, the company is expected to reach $ 63.4 million in total annual revenue – 32% increase. From his 2020 numbers.
Now, let’s look at stock performance.
GLAD reaches a fresh peak of 52 weeks
GLAD has soared 20.6% over the past 12 months – outperforming its investment services companies, which averaged only 1.6% profit at the time.
It jumped 27% from the 52-week low in May 2021 to a new 52-week high just last week.
So while the investment services sector has declined, Gladstone has risen to the top.
Gladstone Capital Corp
Using a six-factor stock rating system, Gladstone Capital Corp 95 Overall.
That means we are “strong bulls” in the stock and expect it to beat the wider market At least three times in the next 12 months.
GLAD is ranked green in five of our six ranking factors:
- growth – GLAD has a year-on-year earnings per share (EPS) growth rate of more than 999% and an annual growth rate of 45.8%. In the last 12 months, earnings per share have soared by 742%, and its sales have risen by 73.8%. Gladstone achieves a 88 On growth.
- value Gladstone scores a 86 On a value with a price-to-profit ratio of 4.91 compared to the average of peers in the segment of 35.5. The price-to-sale ratio of GLAD is 5.54, while the average investment services segment is 6.5.
- Volatility – While there were ups and downs in the stock, Gladstone took off vigorously with little resistance and reached a 52-week high last week. GLAD scores a 80 On volatility.
- size – GLAD’s current market capitalization is around $ 418 million – which puts it at the lower end of small stocks. (Small stocks have a market capitalization of between $ 300 million and $ 2 billion.) Smaller stocks tend to perform better than larger stocks with a similar rating in the other five factors of a person’s system. Gladstone notes a 78 On size.
- quality – Despite the lower quality score, Gladstone beats its peers in the sector in returns on assets, capital and investments (all positive double digits). It also has an operating margin of 128.7% compared to the average investment services segment of only 37.5%. GLAD Score a 67 On quality.
Happy winner of “Neutral” 59 in momentum – mainly due to its side trading throughout most of 2021. However its recent introduction to a new 52-week high should raise this score higher.
The Bottom Line: Inflation hits small to medium-sized businesses.
The costs of the necessary goods and services are rising, cutting the profit margins.
These companies are going to turn to business development companies like Gladstone Capital Corp. To help them get through this difficult economic period.
This is why GLAD is a must-have item for your portfolio.
Matt Clark, CMSA®
Researcher, Money and Markets Analyst
Matt Clark is the research analyst at Money & Markets. Is the host of our podcast,The bull and the bearAs good as theMarijuana Market Update. He is also a certified capital market and securities analyst through the Institute of Corporate Finance. Before joining the team, he spent 25 years as an investigative journalist and editor – covering everything from politics to business.
8.5% Inflation Hammers Businesses Too! Gladstone (GLAD) Lends a Hand Source link 8.5% Inflation Hammers Businesses Too! Gladstone (GLAD) Lends a Hand