Bain Capital Specialty

BCSF

Market cap $901M

Bain Capital Specialty Finance is highlighted as BDC stocks trade near lows while the S&P 500 rises. Historically, BDC prices reflect market sentiment more than intrinsic value, making them volatile investments. Bonds in the BDC sector have offered better risk-return profiles, but current stock valuations are becoming attractive.

Bain Capital Specialty Finance is downgraded from buy to hold due to increased economic volatility and lower base rates impacting earnings. BCSF maintains solid credit quality and manageable non-accruals, but net investment income and NAV have declined amid sector headwinds. Leverage has risen above peer averages, and refinancing 2026 debt at higher rates could pressure BCSF's financials despite adequate liquidity.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

CNQ, BCSF, CSX, and VZ stand out with strong shareholder yield, blending income, buybacks and debt reduction for portfolio defense.

The Dividend Power strategy highlights 35 high-yield stocks, with 12 'safer' picks offering free cash flow yields above dividend yields and fair valuations. Top five 'safer' Dividend Power stocks for September are Carlyle Secured Lending (CGBD), Stellus Capital (SCM), Blue Owl Capital (OBDC), SLR Investment (SLRC), and Seven Hills Realty (SEVN). Analyst projections suggest the top ten Dividend Power stocks could deliver average net gains of 43.3% by September 2026, though risk and volatility vary.

VEON, SFD and BCSF made it to the Zacks Rank #1 (Strong Buy) value stocks list on September 18, 2025.

BCSF, PFS and SFD made it to the Zacks Rank #1 (Strong Buy) income stocks list on September 18, 2025.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

The investment case for closed-end funds (CEFs) is weak now due to tight discounts, high leverage costs, and expensive underlying assets. Most CEFs do not deliver sustainable alpha, and lower-fee actively managed ETFs now offer similar exposures with better economics. We have reduced our CEF allocation, favoring alternatives like BDCs, select ETFs, preferreds, and bonds for better value and risk/reward.

Bain Capital Specialty (BCSF) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.