We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ares Capital (ARCC) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Ares Capital (ARCC - Free Report) closed at $18.85 in the latest trading session, marking a +1.02% move from the prior day. The stock lagged the S&P 500's daily gain of 1.5%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 0.32%.
Coming into today, shares of the private equity firm had lost 5.28% in the past month. In that same time, the Finance sector lost 8.98%, while the S&P 500 lost 6.54%.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. This is expected to be July 26, 2022. On that day, Ares Capital is projected to report earnings of $0.43 per share, which would represent a year-over-year decline of 18.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $467.37 million, up 1.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.77 per share and revenue of $1.9 billion. These totals would mark changes of +6.63% and +4.32%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Ares Capital is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Ares Capital is holding a Forward P/E ratio of 10.55. This represents a premium compared to its industry's average Forward P/E of 9.68.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ares Capital (ARCC) Gains But Lags Market: What You Should Know
Ares Capital (ARCC - Free Report) closed at $18.85 in the latest trading session, marking a +1.02% move from the prior day. The stock lagged the S&P 500's daily gain of 1.5%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 0.32%.
Coming into today, shares of the private equity firm had lost 5.28% in the past month. In that same time, the Finance sector lost 8.98%, while the S&P 500 lost 6.54%.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. This is expected to be July 26, 2022. On that day, Ares Capital is projected to report earnings of $0.43 per share, which would represent a year-over-year decline of 18.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $467.37 million, up 1.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.77 per share and revenue of $1.9 billion. These totals would mark changes of +6.63% and +4.32%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Ares Capital is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Ares Capital is holding a Forward P/E ratio of 10.55. This represents a premium compared to its industry's average Forward P/E of 9.68.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.