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Stellus Capital Investment Corp (SCM) is not a strong buy at this time for a beginner, long-term investor with $50,000-$100,000 available for investment. The stock is currently oversold with a bearish technical trend, weak financial performance, and no significant positive catalysts. While options data indicates a low put-call ratio, suggesting limited bearish sentiment, the lack of strong trading signals and poor recent financial results make this stock a hold rather than a buy.
The stock is in a bearish trend with the MACD histogram at -0.138 (below 0), RSI at 16.818 (indicating oversold conditions), and bearish moving averages (SMA_200 > SMA_20 > SMA_5). Key support is at 11.517, and the pre-market price is close to this level at 11.69.

The stock is oversold, as indicated by the RSI of 16.818, which could attract short-term buyers. Options data shows a low put-call ratio, indicating limited bearish sentiment.
The company's financial performance in Q3 2025 was weak, with revenue down -24.30% YoY, net income down -56.72% YoY, and EPS down -61.02% YoY. No recent news or significant insider/hedge fund activity. The stock's technical indicators are bearish, and there are no recent trading signals from AI Stock Picker or SwingMax.
In Q3 2025, the company reported a revenue decline of -24.30% YoY to $23,997,058, net income dropped -56.72% YoY to $6,692,028, and EPS fell -61.02% YoY to $0.23. Gross margin slightly decreased to 99.28% (-0.24% YoY). Overall, the financial performance shows significant weakness.
No recent analyst ratings or price target changes were provided. Wall Street sentiment appears neutral with no strong pros or cons identified.