Ares Capital (ARCC) Stock Moves -0.48%: What You Should Know
Ares Capital (ARCC) closed the most recent trading day at $18.60, moving -0.48% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.49%. Meanwhile, the Dow lost 2.25%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Prior to today's trading, shares of the private equity firm had lost 3.81% over the past month. This has lagged the Finance sector's loss of 0.54% and the S&P 500's gain of 1.14% in that time.
Investors will be hoping for strength from Ares Capital as it approaches its next earnings release. The company is expected to report EPS of $0.55, up 5.77% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $578.42 million, up 9.34% from the year-ago period.
ARCC's full-year Zacks Consensus Estimates are calling for earnings of $1.93 per share and revenue of $2.03 billion. These results would represent year-over-year changes of +16.27% and +11.78%, respectively.
It is also important to note the recent changes to analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Ares Capital is currently a Zacks Rank #3 (Hold).
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 9.7. This represents a premium compared to its industry's average Forward P/E of 8.5.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 7, which puts it in the top 3% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Ares Capital Corporation (ARCC) : Free Stock Analysis Report
