In the latest close session, Ares Capital (ARCC) was down 2.07% at $20.35. The stock's change was less than the S&P 500's daily gain of 0.5%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.43%.
Prior to today's trading, shares of the private equity firm had gained 2.87% outpaced the Finance sector's loss of 0.96% and the S&P 500's gain of 0.18%.
Investors will be eagerly watching for the performance of Ares Capital in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 4, 2026. 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 are projecting earnings of $2 per share and revenue of $3.06 billion, which would represent changes of -14.16% and 0%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Ares Capital. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. 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 10.63. This expresses a premium compared to the average Forward P/E of 8.88 of its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 174, finds itself in the bottom 29% echelons of all 250+ industries.
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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