Ares Capital (ARCC) Stock Sinks As Market Gains: Here's Why
The most recent trading session ended with Ares Capital (ARCC) standing at $19.72, reflecting a -0.15% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.
Shares of the private equity firm witnessed a gain of 0.1% over the previous month, trailing the performance of the Finance sector with its gain of 7.84% and the S&P 500's gain of 5.16%.
The investment community will be paying close attention to the earnings performance of Ares Capital in its upcoming release. 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%. Meanwhile, the latest consensus estimate predicts the revenue to be $683.52 million, indicating a 6.8% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.34 per share and revenue of $2.59 billion, which would represent changes of +15.84% and +23.59%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Ares Capital is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Ares Capital is currently being traded at a Forward P/E ratio of 8.45. This valuation marks a premium compared to its industry's average Forward P/E of 7.51.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 24, this industry ranks in the top 10% of all industries, numbering over 250.
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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Ares Capital Corporation (ARCC) : Free Stock Analysis Report
