The latest trading session saw Ares Capital (ARCC) ending at $20.75, denoting a +1.69% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 1.67%. Elsewhere, the Dow gained 1.07%, while the tech-heavy Nasdaq added 2.5%.
Shares of the private equity firm have depreciated by 8.56% over the course of the past month, underperforming the Finance sector's loss of 4.45% and the S&P 500's loss of 6.57%.
The investment community will be closely monitoring the performance of Ares Capital in its forthcoming earnings report. The company is scheduled to release its earnings on April 29, 2025. On that day, Ares Capital is projected to report earnings of $0.54 per share, which would represent a year-over-year decline of 8.47%. Simultaneously, our latest consensus estimate expects the revenue to be $771.09 million, showing a 10% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.18 per share and a revenue of $3.16 billion, representing changes of -6.44% and +5.78%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, the Zacks Consensus EPS estimate has remained steady. Ares Capital is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Ares Capital is presently being traded at a Forward P/E ratio of 9.35. For comparison, its industry has an average Forward P/E of 8.05, 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 91, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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