Ares Capital (ARCC) Beats Stock Market Upswing: What Investors Need to Know
The most recent trading session ended with Ares Capital (ARCC) standing at $19.76, reflecting a +0.71% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.17% gain on the day. Elsewhere, the Dow lost 0.05%, while the tech-heavy Nasdaq added 0.2%.
Prior to today's trading, shares of the private equity firm had lost 1.11% over the past month. This has lagged the Finance sector's gain of 7.56% and the S&P 500's gain of 4.71% in that time.
Market participants will be closely following the financial results of Ares Capital in its upcoming release. The company's upcoming EPS is projected at $0.59, signifying a 6.35% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $683.52 million, up 6.8% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.34 per share and revenue of $2.59 billion. These totals would mark changes of +15.84% and +23.59%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Ares Capital. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Ares Capital holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Ares Capital is currently exchanging hands at a Forward P/E ratio of 8.39. For comparison, its industry has an average Forward P/E of 7.48, which means Ares Capital is trading at a premium to the group.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 20, placing it within the top 8% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ares Capital Corporation (ARCC) : Free Stock Analysis Report
