Ares Capital (ARCC) closed the most recent trading day at $19.36, moving +1.2% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.17% for the day. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the private equity firm had lost 4.68% over the past month, lagging the Finance sector's loss of 4.18% and the S&P 500's loss of 0.24%.
Investors will be eagerly watching for the performance of Ares Capital in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.48, indicating a 4% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $780.31 million, reflecting a 0.22% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.91 per share and revenue of $3.1 billion. These totals would mark changes of -4.98% and +1.7%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Ares Capital possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 10.04. This represents a premium compared to its industry average Forward P/E of 7.78.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 106, this industry ranks in the top 44% of all industries, numbering over 250.
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.
To follow ARCC in the coming trading sessions, be sure to utilize Zacks.com.
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