Ares Capital (ARCC) ended the recent trading session at $19.15, demonstrating a -1.08% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.76%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 1.13%.
Coming into today, shares of the private equity firm had lost 2.86% in the past month. In that same time, the Finance sector lost 2.02%, while the S&P 500 gained 1.26%.
Analysts and investors alike will be keeping a close eye on the performance of Ares Capital in its upcoming earnings disclosure. The company is expected to report EPS of $0.48, down 4% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $780.31 million, indicating a 0.22% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.91 per share and a revenue of $3.1 billion, indicating changes of -4.98% and +1.7%, respectively, from the former 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 remained unchanged. Currently, Ares Capital is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 10.16. This signifies a premium in comparison to the average Forward P/E of 7.98 for its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 41% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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