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Ares Capital (ARCC) Rises Higher Than Market: Key Facts

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Ares Capital (ARCC - Free Report) closed the most recent trading day at $21.15, moving +0.24% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.1%. Meanwhile, the Dow experienced a drop of 0.08%, and the technology-dominated Nasdaq saw an increase of 0.28%.

The private equity firm's stock has dropped by 2% in the past month, falling short of the Finance sector's gain of 1.14% and the S&P 500's gain of 4.08%.

Market participants will be closely following the financial results of Ares Capital in its upcoming release. The company plans to announce its earnings on July 30, 2024. The company's upcoming EPS is projected at $0.58, signifying steadiness compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $714.27 million, indicating a 12.66% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.34 per share and a revenue of $2.87 billion, signifying shifts of -1.27% and +9.98%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate has remained steady. Ares Capital presently features a Zacks Rank of #2 (Buy).

Looking at valuation, Ares Capital is presently trading at a Forward P/E ratio of 9.02. This expresses a premium compared to the average Forward P/E of 8.31 of its industry.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 38% echelons 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.

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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