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Ares Capital (ARCC) Gains But Lags Market: What You Should Know
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Ares Capital (ARCC - Free Report) ended the recent trading session at $21.65, demonstrating a +0.32% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.63%.
Heading into today, shares of the private equity firm had gained 4% over the past month, outpacing the Finance sector's loss of 3.26% and the S&P 500's gain of 3.76% in that time.
The investment community will be closely monitoring the performance of Ares Capital in its forthcoming earnings report. The company is scheduled to release its earnings on October 30, 2024. The company is expected to report EPS of $0.59, unchanged from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $766.58 million, reflecting a 17.04% rise from the equivalent quarter last 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.
It is also important to note the recent changes to analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. Right now, Ares Capital possesses a Zacks Rank of #4 (Sell).
In terms of valuation, Ares Capital is currently trading at a Forward P/E ratio of 9.02. For comparison, its industry has an average Forward P/E of 7.95, which means Ares Capital is trading at a premium to the group.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 224, finds itself in the bottom 12% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Ares Capital (ARCC) Gains But Lags Market: What You Should Know
Ares Capital (ARCC - Free Report) ended the recent trading session at $21.65, demonstrating a +0.32% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.63%.
Heading into today, shares of the private equity firm had gained 4% over the past month, outpacing the Finance sector's loss of 3.26% and the S&P 500's gain of 3.76% in that time.
The investment community will be closely monitoring the performance of Ares Capital in its forthcoming earnings report. The company is scheduled to release its earnings on October 30, 2024. The company is expected to report EPS of $0.59, unchanged from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $766.58 million, reflecting a 17.04% rise from the equivalent quarter last 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.
It is also important to note the recent changes to analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. Right now, Ares Capital possesses a Zacks Rank of #4 (Sell).
In terms of valuation, Ares Capital is currently trading at a Forward P/E ratio of 9.02. For comparison, its industry has an average Forward P/E of 7.95, which means Ares Capital is trading at a premium to the group.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 224, finds itself in the bottom 12% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.