Ares Capital (ARCC) Dips More Than Broader Markets: What You Should Know
Ares Capital (ARCC) closed the most recent trading day at $17.81, moving -1.27% from the previous trading session. This change lagged the S&P 500's 1.03% loss on the day. At the same time, the Dow lost 1.15%, and the tech-heavy Nasdaq gained 0.27%.
Prior to today's trading, shares of the private equity firm had lost 7.01% over the past month. This has lagged the Finance sector's loss of 3.21% and the S&P 500's loss of 3.51% in that time.
Ares Capital will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2022. In that report, analysts expect Ares Capital to post earnings of $0.49 per share. This would mark year-over-year growth of 4.26%. Our most recent consensus estimate is calling for quarterly revenue of $509.21 million, up 15.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.93 per share and revenue of $1.96 billion, which would represent changes of +16.27% and +7.66%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Ares Capital. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ares Capital currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Ares Capital is holding a Forward P/E ratio of 9.35. This valuation marks a premium compared to its industry's average Forward P/E of 8.57.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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