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Ares Capital (ARCC) Rises As Market Takes a Dip: Key Facts

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The most recent trading session ended with Ares Capital (ARCC - Free Report) standing at $20.77, reflecting a +0.05% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.51%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 0.93%.

Heading into today, shares of the private equity firm had gained 0.92% over the past month, outpacing the Finance sector's loss of 3.52% and the S&P 500's loss of 0.26% in that time.

The investment community will be paying close attention to the earnings performance of Ares Capital in its upcoming release. The company is slated to reveal its earnings on July 30, 2024. The company is predicted to post an EPS of $0.58, indicating constancy compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $714.27 million, indicating a 12.66% increase compared to the same quarter of the previous year.

ARCC's full-year Zacks Consensus Estimates are calling for earnings of $2.34 per share and revenue of $2.87 billion. These results would represent year-over-year changes of -1.27% and +9.98%, respectively.

It is also important to note the recent changes to analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained steady. Right now, Ares Capital possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Ares Capital is at present trading with a Forward P/E ratio of 8.88. Its industry sports an average Forward P/E of 8.22, 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 has a Zacks Industry Rank of 105, which puts it in the top 42% 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.

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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