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Ares Capital (ARCC) Falls More Steeply Than Broader Market: What Investors Need to Know
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Ares Capital (ARCC - Free Report) closed the latest trading day at $20.85, indicating a -1.04% change from the previous session's end. This change lagged the S&P 500's 0.78% loss on the day. Elsewhere, the Dow saw a downswing of 1.29%, while the tech-heavy Nasdaq depreciated by 0.7%.
The private equity firm's shares have seen an increase of 2.33% over the last month, surpassing the Finance sector's loss of 0.59% and the S&P 500's gain of 2.14%.
The investment community will be closely monitoring the performance of Ares Capital in its forthcoming earnings report. The company is scheduled to release its earnings on July 30, 2024. The company is forecasted to report an EPS of $0.58, showcasing no movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $714.27 million, reflecting a 12.66% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.34 per share and a revenue of $2.87 billion, representing changes of -1.27% and +9.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Ares Capital. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Ares Capital is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Ares Capital is currently trading at a Forward P/E ratio of 9.01. This indicates a premium in contrast to its industry's Forward P/E of 8.35.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Ares Capital (ARCC) Falls More Steeply Than Broader Market: What Investors Need to Know
Ares Capital (ARCC - Free Report) closed the latest trading day at $20.85, indicating a -1.04% change from the previous session's end. This change lagged the S&P 500's 0.78% loss on the day. Elsewhere, the Dow saw a downswing of 1.29%, while the tech-heavy Nasdaq depreciated by 0.7%.
The private equity firm's shares have seen an increase of 2.33% over the last month, surpassing the Finance sector's loss of 0.59% and the S&P 500's gain of 2.14%.
The investment community will be closely monitoring the performance of Ares Capital in its forthcoming earnings report. The company is scheduled to release its earnings on July 30, 2024. The company is forecasted to report an EPS of $0.58, showcasing no movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $714.27 million, reflecting a 12.66% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.34 per share and a revenue of $2.87 billion, representing changes of -1.27% and +9.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Ares Capital. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Ares Capital is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Ares Capital is currently trading at a Forward P/E ratio of 9.01. This indicates a premium in contrast to its industry's Forward P/E of 8.35.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.