Ares Capital (ARCC) ended the recent trading session at $20.44, demonstrating a +1.04% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.19% for the day. Elsewhere, the Dow saw an upswing of 0.66%, while the tech-heavy Nasdaq depreciated by 0.03%.
Prior to today's trading, shares of the private equity firm had lost 3.3% lagged the Finance sector's gain of 2.08% and the S&P 500's gain of 0.54%.
Market participants will be closely following the financial results of Ares Capital in its upcoming release. The company is expected to report EPS of $0.5, down 9.09% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $795.35 million, up 4.79% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2 per share and a revenue of $3.06 billion, demonstrating changes of -14.16% and 0%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates 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 business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Ares Capital holds a Zacks Rank of #4 (Sell).
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 10.35. This expresses a premium compared to the average Forward P/E of 8.71 of its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 191, this industry ranks in the bottom 23% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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