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Ares Capital (ARCC) Stock Moves -0.52%: What You Should Know

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Ares Capital (ARCC - Free Report) ended the recent trading session at $20.97, demonstrating a -0.52% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.6%. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, lost 1.12%.

Coming into today, shares of the private equity firm had lost 0.94% in the past month. In that same time, the Finance sector gained 2.41%, while the S&P 500 gained 3.15%.

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 $0.59, showcasing no movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $758.58 million, up 15.81% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.38 per share and revenue of $2.98 billion, which would represent changes of +0.42% and +13.91%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.92% higher. As of now, Ares Capital holds a Zacks Rank of #3 (Hold).

Looking at valuation, Ares Capital is presently trading at a Forward P/E ratio of 8.84. This represents a premium compared to its industry's average Forward P/E of 8.06.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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