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Ares Capital (ARCC) Flat As Market Sinks: What You Should Know

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Ares Capital (ARCC - Free Report) closed the most recent trading day at $21.57, making no change from the previous trading session. This change was narrower than the S&P 500's 0.02% loss on the day. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.04%.

The private equity firm's stock has climbed by 6.05% in the past month, exceeding the Finance sector's loss of 3.12% and the S&P 500's gain of 3.77%.

The investment community will be paying close attention to the earnings performance of Ares Capital in its upcoming release. The company is slated to reveal its earnings on October 30, 2024. In that report, analysts expect Ares Capital to post earnings of $0.59 per share. This would mark no growth from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $766.58 million, indicating a 17.04% increase compared to the same quarter of the previous year.

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.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. Ares Capital is currently a Zacks Rank #4 (Sell).

From a valuation perspective, Ares Capital is currently exchanging hands at a Forward P/E ratio of 9.01. This expresses a premium compared to the average Forward P/E of 7.91 of its industry.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 220, this industry ranks in the bottom 13% of all industries, numbering over 250.

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.

To follow ARCC in the coming trading sessions, be sure to utilize Zacks.com.


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