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Ares Capital (ARCC) Ascends While Market Falls: Some Facts to Note

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The latest trading session saw Ares Capital (ARCC - Free Report) ending at $21.13, denoting a +0.57% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 0.21%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.05%.

Shares of the private equity firm witnessed a gain of 2.34% over the previous month, beating the performance of the Finance sector with its loss of 4.48% and underperforming the S&P 500's gain of 5.94%.

Market participants will be closely following the financial results of Ares Capital in its upcoming release. The company plans to announce its earnings on October 30, 2024. 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 $766.58 million, up 17.04% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.39 per share and revenue of $3 billion. These totals would mark changes of +0.84% and +14.76%, respectively, from last 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.38% increase. As of now, Ares Capital holds a Zacks Rank of #4 (Sell).

Looking at its valuation, Ares Capital is holding a Forward P/E ratio of 8.78. This denotes a premium relative to the industry's average Forward P/E of 7.9.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 231, this industry ranks in the bottom 9% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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