Ares Capital (ARCC) closed the most recent trading day at $16.88, moving +0.24% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.51%. Elsewhere, the Dow lost 1.71%, while the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the private equity firm had lost 12.75% over the past month. This has lagged the Finance sector's loss of 9% and the S&P 500's loss of 9.52% in that time.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. The company is expected to report EPS of $0.49, up 4.26% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $509.21 million, up 15.21% from the prior-year quarter.
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. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Ares Capital is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 8.73. This represents a premium compared to its industry's average Forward P/E of 8.26.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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