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Ares Capital (ARCC) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Ares Capital (ARCC - Free Report) closed at $19.62, marking a +1.29% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.1%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 6.59%.
Heading into today, shares of the private equity firm had gained 5.16% over the past month, lagging the Finance sector's gain of 6.37% and outpacing the S&P 500's gain of 4.58% in that time.
Ares Capital will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2023. On that day, Ares Capital is projected to report earnings of $0.56 per share, which would represent year-over-year growth of 7.69%. Meanwhile, our latest consensus estimate is calling for revenue of $577.74 million, up 9.21% from the prior-year quarter.
Any recent changes to analyst estimates for Ares Capital should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.47% higher. Ares Capital is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 8.51. This valuation marks a premium compared to its industry's average Forward P/E of 7.96.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Ares Capital (ARCC) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Ares Capital (ARCC - Free Report) closed at $19.62, marking a +1.29% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.1%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 6.59%.
Heading into today, shares of the private equity firm had gained 5.16% over the past month, lagging the Finance sector's gain of 6.37% and outpacing the S&P 500's gain of 4.58% in that time.
Ares Capital will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2023. On that day, Ares Capital is projected to report earnings of $0.56 per share, which would represent year-over-year growth of 7.69%. Meanwhile, our latest consensus estimate is calling for revenue of $577.74 million, up 9.21% from the prior-year quarter.
Any recent changes to analyst estimates for Ares Capital should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.47% higher. Ares Capital is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 8.51. This valuation marks a premium compared to its industry's average Forward P/E of 7.96.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.