In the latest trading session, Ares Capital (ARCC) closed at $17.54, marking a -1.68% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.72%. At the same time, the Dow lost 1.62%, and the tech-heavy Nasdaq gained 0.09%.
Prior to today's trading, shares of the private equity firm had lost 13.1% over the past month. This has lagged the Finance sector's loss of 7.22% and the S&P 500's loss of 9.09% in that time.
Investors will be hoping for strength from Ares Capital as it approaches its next earnings release. On that day, Ares Capital is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 4.26%. Meanwhile, our latest consensus estimate is calling for revenue of $509.21 million, up 15.21% from the prior-year quarter.
ARCC's full-year Zacks Consensus Estimates are calling for earnings of $1.93 per share and revenue of $1.96 billion. These results would represent year-over-year changes of +16.27% and +7.66%, respectively.
Investors might also notice recent changes to analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 1.14% higher within the past month. Ares Capital is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 9.24. This valuation marks a premium compared to its industry's average Forward P/E of 9.03.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 14, putting it in the top 6% 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.
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