Ares Capital (ARCC) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest market close, Ares Capital (ARCC) reached $20.16, with a -0.3% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.17%. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, lost 0.55%.
Shares of the private equity firm have depreciated by 1.89% over the course of the past month, underperforming the Finance sector's gain of 2.86% and the S&P 500's gain of 3.98%.
Analysts and investors alike will be keeping a close eye on the performance of Ares Capital in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.58, showcasing a 3.57% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $699.26 million, showing a 13.15% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.32 per share and revenue of $2.83 billion, which would represent changes of -2.11% and +8.38%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% decrease. At present, Ares Capital boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Ares Capital is currently trading at a Forward P/E ratio of 8.71. This expresses a premium compared to the average Forward P/E of 7.69 of its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 197, finds itself in the bottom 22% echelons of all 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
