Ares Capital (ARCC) Stock Falls Amid Market Uptick: What Investors Need to Know
Ares Capital (ARCC) closed the most recent trading day at $20.41, moving -0.34% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.18%. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw an increase of 0.1%.
Coming into today, shares of the private equity firm had gained 2.71% in the past month. In that same time, the Finance sector gained 4.37%, while the S&P 500 gained 2.75%.
Market participants will be closely following the financial results of Ares Capital in its upcoming release. The company plans to announce its earnings on February 7, 2024. It is anticipated that the company will report an EPS of $0.59, marking a 6.35% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $683.52 million, showing a 6.8% escalation compared to the year-ago quarter.
Investors should also take note of any recent adjustments to analyst estimates for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Ares Capital is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Ares Capital is presently trading at a Forward P/E ratio of 8.81. This valuation marks a premium compared to its industry's average Forward P/E of 7.78.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 25% 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.
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
