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Ares Capital (ARCC) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Ares Capital (ARCC - Free Report) closed at $17.82, marking a -0.45% move from the previous day. This move lagged the S&P 500's daily gain of 2.37%. Meanwhile, the Dow gained 2.47%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Coming into today, shares of the private equity firm had gained 0.34% in the past month. In that same time, the Finance sector lost 5.94%, while the S&P 500 lost 4.82%.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. This is expected to be October 25, 2022. In that report, analysts expect Ares Capital to post earnings of $0.50 per share. This would mark year-over-year growth of 6.38%. Meanwhile, our latest consensus estimate is calling for revenue of $511.42 million, up 15.71% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.94 per share and revenue of $1.96 billion. These totals would mark changes of +16.87% and +7.88%, respectively, from last year.
Any recent changes to analyst estimates for Ares Capital should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.35% higher. Ares Capital currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 9.24. For comparison, its industry has an average Forward P/E of 8.4, 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 industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow ARCC in the coming trading sessions, be sure to utilize Zacks.com.
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Ares Capital (ARCC) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Ares Capital (ARCC - Free Report) closed at $17.82, marking a -0.45% move from the previous day. This move lagged the S&P 500's daily gain of 2.37%. Meanwhile, the Dow gained 2.47%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Coming into today, shares of the private equity firm had gained 0.34% in the past month. In that same time, the Finance sector lost 5.94%, while the S&P 500 lost 4.82%.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. This is expected to be October 25, 2022. In that report, analysts expect Ares Capital to post earnings of $0.50 per share. This would mark year-over-year growth of 6.38%. Meanwhile, our latest consensus estimate is calling for revenue of $511.42 million, up 15.71% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.94 per share and revenue of $1.96 billion. These totals would mark changes of +16.87% and +7.88%, respectively, from last year.
Any recent changes to analyst estimates for Ares Capital should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.35% higher. Ares Capital currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 9.24. For comparison, its industry has an average Forward P/E of 8.4, 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 industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow ARCC in the coming trading sessions, be sure to utilize Zacks.com.