Ares Capital (ARCC) ended the recent trading session at $22.78, demonstrating a +1.15% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.28%. Meanwhile, the Dow experienced a rise of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.09%.
Shares of the private equity firm witnessed a gain of 0.4% over the previous month, trailing the performance of the Finance sector with its gain of 2.79%, and the S&P 500's gain of 4.37%.
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 29, 2025. In that report, analysts expect Ares Capital to post earnings of $0.51 per share. This would mark a year-over-year decline of 16.39%. Meanwhile, the latest consensus estimate predicts the revenue to be $746.71 million, indicating a 1.1% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.02 per share and a revenue of $2.99 billion, indicating changes of -13.3% and -0.09%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Ares Capital. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.42% decrease. Ares Capital is holding a Zacks Rank of #4 (Sell) right now.
From a valuation perspective, Ares Capital is currently exchanging hands at a Forward P/E ratio of 11.14. This signifies a premium in comparison to the average Forward P/E of 8.9 for its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 239, this industry ranks in the bottom 4% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ares Capital Corporation (ARCC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
