Ares Capital (ARCC) closed at $18.96 in the latest trading session, marking a -0.68% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.72%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the private equity firm had lost 7.1% over the past month. This has lagged the Finance sector's loss of 7.06% and was narrower than the S&P 500's loss of 9.06% in that time.
Investors will be hoping for strength from Ares Capital as it approaches its next earnings release. In that report, analysts expect Ares Capital to post earnings of $0.49 per share. This would mark year-over-year growth of 4.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $509.21 million, up 15.21% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.93 per share and revenue of $1.96 billion. These totals would mark changes of +16.27% and +7.66%, respectively, from last year.
Any recent changes to analyst estimates for Ares Capital should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.14% higher. Ares Capital is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 9.89 right now. Its industry sports an average Forward P/E of 9.46, so we one might conclude that Ares Capital is trading at a premium comparatively.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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