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Ares Capital (ARCC) Stock Drops Despite Market Gains: Important Facts to Note
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Ares Capital (ARCC - Free Report) ended the recent trading session at $20.17, demonstrating a -0.79% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw a downswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.2%.
The private equity firm's stock has dropped by 2.45% in the past month, falling short of the Finance sector's gain of 2.72% and the S&P 500's gain of 1.54%.
The investment community will be paying close attention to the earnings performance of Ares Capital in its upcoming release. The company is predicted to post an EPS of $0.59, indicating constancy compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $765.64 million, up 16.89% from the prior-year quarter.
ARCC's full-year Zacks Consensus Estimates are calling for earnings of $2.38 per share and revenue of $3 billion. These results would represent year-over-year changes of +0.42% and +14.75%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Ares Capital. Such recent modifications usually signify the changing landscape of near-term business trends. 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Ares Capital boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 8.53. For comparison, its industry has an average Forward P/E of 7.96, which means Ares Capital is trading at a premium to the group.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 181, positioning it in the bottom 29% 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.
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) Stock Drops Despite Market Gains: Important Facts to Note
Ares Capital (ARCC - Free Report) ended the recent trading session at $20.17, demonstrating a -0.79% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw a downswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.2%.
The private equity firm's stock has dropped by 2.45% in the past month, falling short of the Finance sector's gain of 2.72% and the S&P 500's gain of 1.54%.
The investment community will be paying close attention to the earnings performance of Ares Capital in its upcoming release. The company is predicted to post an EPS of $0.59, indicating constancy compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $765.64 million, up 16.89% from the prior-year quarter.
ARCC's full-year Zacks Consensus Estimates are calling for earnings of $2.38 per share and revenue of $3 billion. These results would represent year-over-year changes of +0.42% and +14.75%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Ares Capital. Such recent modifications usually signify the changing landscape of near-term business trends. 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Ares Capital boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 8.53. For comparison, its industry has an average Forward P/E of 7.96, which means Ares Capital is trading at a premium to the group.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 181, positioning it in the bottom 29% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.