Ares Capital (ARCC) closed the most recent trading day at $18.78, moving +2.01% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.42%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.29%.
Shares of the private equity firm have depreciated by 3.46% over the course of the past month, underperforming the Finance sector's gain of 4.33%, and the S&P 500's gain of 2.2%.
The upcoming earnings release of Ares Capital will be of great interest to investors. The company's earnings report is expected on July 29, 2026. It is anticipated that the company will report an EPS of $0.47, marking a 6% fall 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.9 per share and a revenue of $3.12 billion, indicating changes of -5.47% and +2.16%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate has moved 0.21% lower. Ares Capital is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Ares Capital is currently trading at a Forward P/E ratio of 9.67. This valuation marks a premium compared to its industry average Forward P/E of 7.92.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 200, positioning it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).