Ares Capital (ARCC) closed at $20.18 in the latest trading session, marking a -1.99% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.34%. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq appreciated by 0.16%.
Shares of the private equity firm have depreciated by 1.95% over the course of the past month, underperforming the Finance sector's gain of 3.09%, and the S&P 500's gain of 1.19%.
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 report is set to go public on February 4, 2026. In that report, analysts expect Ares Capital to post earnings of $0.5 per share. This would mark a year-over-year decline of 9.09%. In the meantime, our current consensus estimate forecasts the revenue to be $795.35 million, indicating a 4.79% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2 per share and a revenue of $3.06 billion, signifying shifts of -14.16% and 0%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Ares Capital presently features a Zacks Rank of #4 (Sell).
In the context of valuation, Ares Capital is at present trading with a Forward P/E ratio of 10.54. For comparison, its industry has an average Forward P/E of 8.84, which means Ares Capital is trading at a premium to the group.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 184, positioning it in the bottom 25% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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