In the latest trading session, Ares Capital (ARCC) closed at $20.64, marking a -1.24% move from the previous day. The stock's change was more than the S&P 500's daily loss of 2.06%. On the other hand, the Dow registered a loss of 1.76%, and the technology-centric Nasdaq decreased by 2.39%.
Shares of the private equity firm have appreciated by 4.97% over the course of the past month, outperforming the Finance sector's gain of 1.72%, and the S&P 500's gain of 1.63%.
Market participants will be closely following the financial results of Ares Capital in its upcoming release. The company plans to announce its earnings on February 4, 2026. The company's earnings per share (EPS) are projected to be $0.5, reflecting a 9.09% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $795.35 million, indicating a 4.79% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2 per share and a revenue of $3.06 billion, indicating changes of -14.16% and 0%, respectively, from the former year.
Any recent changes to analyst estimates for Ares Capital should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Ares Capital is currently a Zacks Rank #3 (Hold).
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 10.69. This signifies a premium in comparison to the average Forward P/E of 8.86 for its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 181, this industry ranks in the bottom 27% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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