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Ares Capital (ARCC) Gains But Lags Market: What You Should Know
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Ares Capital (ARCC - Free Report) closed at $19.77 in the latest trading session, marking a +1.33% move from the prior day. This move lagged the S&P 500's daily gain of 1.84%. Elsewhere, the Dow gained 1.33%, while the tech-heavy Nasdaq added 0.74%.
Coming into today, shares of the private equity firm had lost 6.29% in the past month. In that same time, the Finance sector gained 0.54%, while the S&P 500 lost 0.5%.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. The company is expected to report EPS of $0.43, down 18.87% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $466.61 million, up 1.66% from the year-ago period.
ARCC's full-year Zacks Consensus Estimates are calling for earnings of $1.77 per share and revenue of $1.89 billion. These results would represent year-over-year changes of +6.63% and +3.98%, respectively.
Investors should also note any recent changes to analyst estimates 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.72% lower. Ares Capital is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 11.03. Its industry sports an average Forward P/E of 10.4, so we 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 97, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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Ares Capital (ARCC) Gains But Lags Market: What You Should Know
Ares Capital (ARCC - Free Report) closed at $19.77 in the latest trading session, marking a +1.33% move from the prior day. This move lagged the S&P 500's daily gain of 1.84%. Elsewhere, the Dow gained 1.33%, while the tech-heavy Nasdaq added 0.74%.
Coming into today, shares of the private equity firm had lost 6.29% in the past month. In that same time, the Finance sector gained 0.54%, while the S&P 500 lost 0.5%.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. The company is expected to report EPS of $0.43, down 18.87% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $466.61 million, up 1.66% from the year-ago period.
ARCC's full-year Zacks Consensus Estimates are calling for earnings of $1.77 per share and revenue of $1.89 billion. These results would represent year-over-year changes of +6.63% and +3.98%, respectively.
Investors should also note any recent changes to analyst estimates 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.72% lower. Ares Capital is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 11.03. Its industry sports an average Forward P/E of 10.4, so we 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 97, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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.