Ares Capital (ARCC) closed the most recent trading day at $21.10, moving +1.69% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 2.03%. On the other hand, the Dow registered a gain of 1.23%, and the technology-centric Nasdaq increased by 2.74%.
Prior to today's trading, shares of the private equity firm had lost 6.66% over the past month. This has lagged the Finance sector's loss of 3.37% and the S&P 500's loss of 5.07% in that time.
Market participants will be closely following the financial results of Ares Capital in its upcoming release. The company plans to announce its earnings on April 29, 2025. It is anticipated that the company will report an EPS of $0.54, marking an 8.47% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $771.09 million, up 10% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.18 per share and a revenue of $3.16 billion, indicating changes of -6.44% and +5.78%, respectively, from the former 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.25% lower within the past month. Ares Capital currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Ares Capital is presently trading at a Forward P/E ratio of 9.53. For comparison, its industry has an average Forward P/E of 8.12, which means Ares Capital is trading at a premium to the group.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 139, placing it within the bottom 44% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ares Capital Corporation (ARCC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
