Ares Capital (ARCC) Stock Moves -1.13%: What You Should Know
Ares Capital (ARCC) closed at $19.19 in the latest trading session, marking a -1.13% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.53%. Meanwhile, the Dow lost 1.72%, and the Nasdaq, a tech-heavy index, lost 3.27%.
Heading into today, shares of the private equity firm had lost 0.97% over the past month, outpacing the Finance sector's loss of 1.56% and the S&P 500's loss of 1.28% 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 $0.59, up 43.9% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $631.63 million, up 43.55% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.36 per share and revenue of $2.58 billion. These totals would mark changes of +16.83% and +23.02%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Ares Capital. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 3.7% higher. Ares Capital currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Ares Capital is holding a Forward P/E ratio of 8.22. Its industry sports an average Forward P/E of 7.89, 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 industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% 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.
To follow ARCC in the coming trading sessions, be sure to utilize Zacks.com.
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Ares Capital Corporation (ARCC) : Free Stock Analysis Report
