Ares Capital (ARCC) Increases Yet Falls Behind Market: What Investors Need to Know
Ares Capital (ARCC) closed the most recent trading day at $20.36, moving +0.39% from the previous trading session. This change lagged the S&P 500's 1.23% gain on the day. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 1.7%.
Heading into today, shares of the private equity firm had gained 3.36% over the past month, outpacing the Finance sector's loss of 3.81% and the S&P 500's gain of 0.94% in that time.
The upcoming earnings release of Ares Capital will be of great interest to investors. The company's earnings report is expected on February 7, 2024. In that report, analysts expect Ares Capital to post earnings of $0.59 per share. This would mark a year-over-year decline of 6.35%. Meanwhile, our latest consensus estimate is calling for revenue of $683.52 million, up 6.8% from the prior-year quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Ares Capital is currently a Zacks Rank #3 (Hold).
Looking at valuation, Ares Capital is presently trading at a Forward P/E ratio of 8.72. This valuation marks a premium compared to its industry's average Forward P/E of 7.66.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 39% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Ares Capital Corporation (ARCC) : Free Stock Analysis Report
