Ares Capital (ARCC) Gains But Lags Market: What You Should Know
The latest trading session saw Ares Capital (ARCC) ending at $20.23, denoting a +0.35% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 0.52%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, added 0.9%.
The private equity firm's stock has dropped by 0.35% in the past month, falling short of the Finance sector's gain of 2.95% and the S&P 500's gain of 3.85%.
The upcoming earnings release of Ares Capital will be of great interest to investors. On that day, Ares Capital is projected to report earnings of $0.58 per share, which would represent year-over-year growth of 3.57%. Meanwhile, the latest consensus estimate predicts the revenue to be $699.26 million, indicating a 13.15% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.32 per share and a revenue of $2.83 billion, demonstrating changes of -2.11% and +8.38%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. Currently, Ares Capital is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Ares Capital is currently trading at a Forward P/E ratio of 8.69. This denotes a premium relative to the industry's average Forward P/E of 7.6.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 192, placing it within the bottom 24% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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
