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Ares Capital (ARCC) Stock Moves -0.38%: What You Should Know

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Ares Capital (ARCC - Free Report) closed the most recent trading day at $21, moving -0.38% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 2.12%. On the other hand, the Dow registered a loss of 1.51%, and the technology-centric Nasdaq decreased by 3.26%.

The the stock of private equity firm has risen by 6.46% in the past month, lagging the Finance sector's gain of 7.46% and overreaching the S&P 500's gain of 5.78%.

Investors will be eagerly watching for the performance of Ares Capital in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.59, reflecting no change from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $758.58 million, reflecting a 15.81% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $2.38 per share and a revenue of $2.98 billion, demonstrating changes of +0.42% and +13.91%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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.

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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Ares Capital currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Ares Capital is currently trading at a Forward P/E ratio of 8.84. This expresses a premium compared to the average Forward P/E of 8.07 of its industry.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 192, this industry ranks in the bottom 25% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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