Why Ares Capital (ARCC) is a Top Momentum Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
Ares Capital (ARCC)
Incorporated in Maryland, Ares Capital Corporation is a specialty finance company, which primarily invests in U.S. middle-market companies (firms having annual earnings in the range of $10-$250 million). Here, annual earnings refer to earnings that are calculated before deducting interest, taxes, and depreciation and amortization expenses.
ARCC boasts a Momentum Style Score of B and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Shares of Ares Capital has seen some interesting price action recently; the stock is up 2.3% over the past one week and up 1.3% over the past four weeks. And in the last one-year period, ARCC has gained 7.4%. As for the stock's trading volume, 4,388,161 shares on average were traded over the last 20 days.
A company's earnings performance is important for momentum investors as well. For fiscal 2023, one analyst revised their earnings estimate higher in the last 60 days for ARCC, while the Zacks Consensus Estimate has increased $0 to $2.34 per share. ARCC also boasts an average earnings surprise of 2.2%.
ARCC should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.
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Ares Capital Corporation (ARCC) : Free Stock Analysis Report
