Ares Capital (ARCC) Stock Moves -0.25%: What You Should Know
In the latest trading session, Ares Capital (ARCC) closed at $20.03, marking a -0.25% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, lost 0.56%.
The private equity firm's stock has climbed by 1.31% in the past month, falling short of the Finance sector's gain of 8.34% and the S&P 500's gain of 5.24%.
Analysts and investors alike will be keeping a close eye on the performance of Ares Capital in its upcoming earnings disclosure. On that day, Ares Capital is projected to report earnings of $0.59 per share, which would represent a year-over-year decline of 6.35%. In the meantime, our current consensus estimate forecasts the revenue to be $683.52 million, indicating a 6.8% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.34 per share and revenue of $2.59 billion, indicating changes of +15.84% and +23.59%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Ares Capital. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Ares Capital possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Ares Capital is presently being traded at a Forward P/E ratio of 8.59. This expresses a premium compared to the average Forward P/E of 7.55 of its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 23, finds itself in the top 10% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Ares Capital Corporation (ARCC) : Free Stock Analysis Report
