Ares Capital (ARCC) Suffers a Larger Drop Than the General Market: Key Insights
The most recent trading session ended with Ares Capital (ARCC) standing at $20.30, reflecting a -0.54% shift from the previouse trading day's closing. This move lagged the S&P 500's daily loss of 0.07%.
The the stock of private equity firm has risen by 0.99% in the past month, lagging the Finance sector's gain of 1.65% and the S&P 500's gain of 3.98%.
Analysts and investors alike will be keeping a close eye on the performance of Ares Capital in its upcoming earnings disclosure. The company's earnings report is set to go public on February 7, 2024. The company's earnings per share (EPS) are projected to be $0.59, reflecting a 6.35% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $683.52 million, reflecting a 6.8% rise from the equivalent quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ares Capital. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Ares Capital possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Ares Capital is presently being traded at a Forward P/E ratio of 8.78. This expresses a premium compared to the average Forward P/E of 7.8 of its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ares Capital Corporation (ARCC) : Free Stock Analysis Report
