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In the latest trading session, Ares Capital (ARCC) closed at $19.36, marking a -0.36% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.93%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 0.17%.
Heading into today, shares of the private equity firm had gained 11.03% over the past month, outpacing the Finance sector's gain of 3.57% and the S&P 500's gain of 6.31% in that time.
Investors will be hoping for strength from Ares Capital as it approaches its next earnings release, which is expected to be July 26, 2022. In that report, analysts expect Ares Capital to post earnings of $0.43 per share. This would mark a year-over-year decline of 18.87%. Our most recent consensus estimate is calling for quarterly revenue of $467.37 million, up 1.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.77 per share and revenue of $1.9 billion, which would represent changes of +6.63% and +4.32%, respectively, from the prior year.
Any recent changes to analyst estimates for Ares Capital should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Ares Capital currently has a Zacks Rank of #3 (Hold).
Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 10.96. This valuation marks a premium compared to its industry's average Forward P/E of 10.02.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ARCC in the coming trading sessions, be sure to utilize Zacks.com.
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