Ares Capital (ARCC) closed the most recent trading day at $20.31, moving -2.59% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.59%.
The private equity firm's stock has climbed by 3.17% in the past month, exceeding the Finance sector's gain of 1.44% and the S&P 500's loss of 0.21%.
The investment community will be paying close attention to the earnings performance of Ares Capital in its upcoming release. The company is forecasted to report an EPS of $0.5, showcasing a 9.09% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $795.35 million, indicating a 4.79% increase compared to the same quarter of the previous year.
ARCC's full-year Zacks Consensus Estimates are calling for earnings of $2 per share and revenue of $3.06 billion. These results would represent year-over-year changes of -14.16% and +2.25%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% lower. Ares Capital presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Ares Capital is presently being traded at a Forward P/E ratio of 10.43. For comparison, its industry has an average Forward P/E of 8.55, 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 group has a Zacks Industry Rank of 148, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Ares Capital Corporation (ARCC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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