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Ares Capital (ARCC) Stock Moves -0.36%: What You Should Know

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In the latest market close, Ares Capital (ARCC - Free Report) reached $21.94, with a -0.36% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 1.07%. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 1.19%.

Shares of the private equity firm have depreciated by 0.59% over the course of the past month, outperforming the Finance sector's loss of 4.94% and lagging the S&P 500's loss of 0.36%.

Analysts and investors alike will be keeping a close eye on the performance of Ares Capital in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.57, reflecting a 9.52% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $784.96 million, indicating a 11.03% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.36 per share and a revenue of $3.02 billion, representing changes of -0.42% and +15.38%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Ares Capital. Such recent modifications usually signify the changing landscape of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 last 30 days, the Zacks Consensus EPS estimate has moved 0.12% lower. As of now, Ares Capital holds a Zacks Rank of #3 (Hold).

In terms of valuation, Ares Capital is presently being traded at a Forward P/E ratio of 9.35. This represents a premium compared to its industry's average Forward P/E of 8.14.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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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