In the latest market close, Ares Capital (ARCC – Free Report) reached $21.44, with a -1.43% movement compared to the previous day. The stock’s performance was behind the S&P 500’s daily loss of 0.91%. Elsewhere, the Dow saw a downswing of 1.5%, while the tech-heavy Nasdaq depreciated by 1.96%.
Shares of the private equity firm have depreciated by 5.06% over the course of the past month, underperforming the Finance sector’s loss of 5.01% and outperforming the S&P 500’s loss of 7.38%.
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 $0.54 per share, which would represent a year-over-year decline of 8.47%. Meanwhile, our latest consensus estimate is calling for revenue of $771.09 million, up 10% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.19 per share and revenue of $3.16 billion, indicating changes of -6.01% and +5.78%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Ares Capital. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.51% lower. Ares Capital is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Ares Capital is currently exchanging hands at a Forward P/E ratio of 9.95. This expresses a premium compared to the average Forward P/E of 8.88 of its industry.
The Financial – SBIC & Commercial Industry industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 155, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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