The most recent trading session ended with Ares Capital (ARCC) standing at $22.41, reflecting a +0.54% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.67%. On the other hand, the Dow registered a gain of 0.56%, and the technology-centric Nasdaq increased by 0.87%.
Prior to today's trading, shares of the private equity firm had lost 2.15% over the past month. This has was narrower than the Finance sector's loss of 3.32% and the S&P 500's loss of 5.28% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Ares Capital in its upcoming earnings disclosure. In that report, analysts expect Ares Capital to post earnings of $0.54 per share. This would mark a year-over-year decline of 8.47%. In the meantime, our current consensus estimate forecasts the revenue to be $771.09 million, indicating a 10% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.18 per share and a revenue of $3.16 billion, representing changes of -6.44% and +5.78%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Ares Capital. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.11% lower. Ares Capital is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Ares Capital is holding a Forward P/E ratio of 10.21. Its industry sports an average Forward P/E of 9.02, so one might conclude that Ares Capital is trading at a premium comparatively.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Ares Capital Corporation (ARCC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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