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Ares Capital (ARCC) Gains But Lags Market: What You Should Know
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In the latest trading session, Ares Capital (ARCC - Free Report) closed at $18.63, marking a +1.36% move from the previous day. This change lagged the S&P 500's 1.49% gain on the day. At the same time, the Dow added 1.6%, and the tech-heavy Nasdaq gained 0.06%.
Heading into today, shares of the private equity firm had lost 6.18% over the past month, lagging the Finance sector's loss of 3.29% and the S&P 500's loss of 3.49% in that time.
Investors will be hoping for strength from Ares Capital as it approaches its next earnings release. The company is expected to report EPS of $0.55, up 5.77% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $578.42 million, up 9.34% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.93 per share and revenue of $2.03 billion, which would represent changes of +16.27% and +11.78%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Ares Capital is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 9.54. This represents a premium compared to its industry's average Forward P/E of 8.18.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Gains But Lags Market: What You Should Know
In the latest trading session, Ares Capital (ARCC - Free Report) closed at $18.63, marking a +1.36% move from the previous day. This change lagged the S&P 500's 1.49% gain on the day. At the same time, the Dow added 1.6%, and the tech-heavy Nasdaq gained 0.06%.
Heading into today, shares of the private equity firm had lost 6.18% over the past month, lagging the Finance sector's loss of 3.29% and the S&P 500's loss of 3.49% in that time.
Investors will be hoping for strength from Ares Capital as it approaches its next earnings release. The company is expected to report EPS of $0.55, up 5.77% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $578.42 million, up 9.34% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.93 per share and revenue of $2.03 billion, which would represent changes of +16.27% and +11.78%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Ares Capital is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 9.54. This represents a premium compared to its industry's average Forward P/E of 8.18.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.