Ares Capital (ARCC) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, Ares Capital (ARCC) closed at $20.49, marking a +0.79% move from the previous day. This move outpaced the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.19%.
Heading into today, shares of the private equity firm had gained 1.4% over the past month, outpacing the Finance sector's loss of 2.41% and lagging the S&P 500's gain of 2.48% in that time.
Market participants will be closely following the financial results of Ares Capital in its upcoming release. The company plans to announce its earnings on February 7, 2024. 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, our latest consensus estimate is calling for revenue of $683.52 million, up 6.8% from the prior-year quarter.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Ares Capital currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 8.75 right now. Its industry sports an average Forward P/E of 7.71, so 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 176, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Ares Capital Corporation (ARCC) : Free Stock Analysis Report
