In the latest trading session, Ares Capital (ARCC) closed at $19.21, marking a +1.53% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.51% for the day. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 1.47%.
Heading into today, shares of the private equity firm had gained 4.53% over the past month, outpacing the Finance sector's gain of 3.25% and the S&P 500's gain of 0.53%.
Market participants will be closely following the financial results of Ares Capital in its upcoming release. The company plans to announce its earnings on July 29, 2026. The company's upcoming EPS is projected at $0.47, signifying a 6.00% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $768.95 million, showing a 3.22% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.9 per share and revenue of $3.12 billion, indicating changes of -5.47% and +2.16%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Ares Capital. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.21% lower. Right now, Ares Capital possesses a Zacks Rank of #4 (Sell).
In terms of valuation, Ares Capital is presently being traded at a Forward P/E ratio of 9.94. Its industry sports an average Forward P/E of 8.06, 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 group has a Zacks Industry Rank of 227, putting it in the bottom 8% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Ares Capital Corporation (ARCC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).