In the latest trading session, Ares Capital (ARCC) closed at $18.45, marking a -1.02% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. Meanwhile, the Dow lost 0.66%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Coming into today, shares of the private equity firm had lost 5.38% in the past month. In that same time, the Finance sector lost 4.09%, while the S&P 500 gained 1.4%.
The upcoming earnings release of Ares Capital will be of great interest to investors. The company's earnings report is expected on October 27, 2026. The company is forecasted to report an EPS of $0.48, showcasing a 4% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $780.31 million, down 0.22% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.91 per share and a revenue of $3.1 billion, representing changes of -4.98% and +1.7%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ares Capital. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Ares Capital boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Ares Capital is currently being traded at a Forward P/E ratio of 9.78. This expresses a premium compared to the average Forward P/E of 7.36 of its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 31% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ares Capital Corporation (ARCC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).