Ares Capital (ARCC – Free Report) closed the latest trading day at $21.75, indicating a -0.32% change from the previous session’s end. This change lagged the S&P 500’s 1.08% gain on the day. On the other hand, the Dow registered a gain of 0.92%, and the technology-centric Nasdaq increased by 1.41%.
The private equity firm’s stock has dropped by 6.55% in the past month, falling short of the Finance sector’s loss of 4.3% and outpacing the S&P 500’s loss of 8.26%.
The upcoming earnings release of Ares Capital will be of great interest to investors. The company is predicted to post an EPS of $0.54, indicating an 8.47% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $771.09 million, reflecting a 10% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.19 per share and a revenue of $3.16 billion, signifying shifts of -6.01% and +5.78%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Ares Capital is currently a Zacks Rank #3 (Hold).
Investors should also note Ares Capital’s current valuation metrics, including its Forward P/E ratio of 9.99. This represents a premium compared to its industry’s average Forward P/E of 9.03.
The Financial – SBIC & Commercial Industry industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 34% of over 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.
To follow ARCC in the coming trading sessions, be sure to utilize Zacks.com.
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