Ares Capital (ARCC) Gains But Lags Market: What You Should Know
In the latest market close, Ares Capital (ARCC) reached $20.73, with a +0.93% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 1.12%. Meanwhile, the Dow experienced a rise of 0.61%, and the technology-dominated Nasdaq saw an increase of 1.54%.
Shares of the private equity firm witnessed a gain of 1.73% over the previous month, trailing the performance of the Finance sector with its gain of 4.07% and the S&P 500's gain of 2.06%.
The investment community will be paying close attention to the earnings performance of Ares Capital in its upcoming release. In that report, analysts expect Ares Capital to post earnings of $0.58 per share. This would mark year-over-year growth of 3.57%. Meanwhile, our latest consensus estimate is calling for revenue of $700.81 million, up 13.4% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.32 per share and a revenue of $2.84 billion, representing changes of -2.11% and +8.59%, respectively, from the prior year.
Any recent changes to analyst estimates for Ares Capital should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. At present, Ares Capital boasts a Zacks Rank of #3 (Hold).
Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 8.85. This signifies a premium in comparison to the average Forward P/E of 7.79 for its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 204, placing it within the bottom 20% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Ares Capital Corporation (ARCC) : Free Stock Analysis Report
