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Ares Capital (ARCC) Stock Declines While Market Improves: Some Information for Investors
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Ares Capital (ARCC - Free Report) closed the most recent trading day at $20.52, moving -0.73% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.09% for the day. Meanwhile, the Dow experienced a drop of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.16%.
Prior to today's trading, shares of the private equity firm had lost 3.19% over the past month. This has lagged the Finance sector's gain of 0.26% and the S&P 500's gain of 2.83% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Ares Capital in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.58, showcasing no movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $714.27 million, showing a 12.66% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.34 per share and revenue of $2.87 billion. These totals would mark changes of -1.27% and +9.98%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Ares Capital boasts a Zacks Rank of #3 (Hold).
Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 8.84. Its industry sports an average Forward P/E of 8.18, so 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 industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 37% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Ares Capital (ARCC) Stock Declines While Market Improves: Some Information for Investors
Ares Capital (ARCC - Free Report) closed the most recent trading day at $20.52, moving -0.73% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.09% for the day. Meanwhile, the Dow experienced a drop of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.16%.
Prior to today's trading, shares of the private equity firm had lost 3.19% over the past month. This has lagged the Finance sector's gain of 0.26% and the S&P 500's gain of 2.83% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Ares Capital in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.58, showcasing no movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $714.27 million, showing a 12.66% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.34 per share and revenue of $2.87 billion. These totals would mark changes of -1.27% and +9.98%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Ares Capital boasts a Zacks Rank of #3 (Hold).
Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 8.84. Its industry sports an average Forward P/E of 8.18, so 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 industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 37% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.