Ares Capital (ARCC) Registers a Bigger Fall Than the Market: Important Facts to Note
Ares Capital (ARCC) ended the recent trading session at $20.23, demonstrating a -1.84% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.61%. At the same time, the Dow lost 0.82%, and the tech-heavy Nasdaq lost 2.23%.
Shares of the private equity firm have appreciated by 2.9% over the course of the past month, outperforming the Finance sector's loss of 1.3% and lagging the S&P 500's gain of 3.28%.
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. The company is expected to report EPS of $0.59, down 6.35% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $683.52 million, indicating a 6.8% upward movement from the same quarter last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Ares Capital boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Ares Capital is at present trading with a Forward P/E ratio of 8.87. This indicates a premium in contrast to its industry's Forward P/E of 7.81.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 187, positioning it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Ares Capital Corporation (ARCC) : Free Stock Analysis Report
