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Ares Capital (ARCC) Gains As Market Dips: What You Should Know
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In the latest trading session, Ares Capital (ARCC - Free Report) closed at $18.24, marking a +0.94% move from the previous day. This move outpaced the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 0.11%.
Coming into today, shares of the private equity firm had lost 9.06% in the past month. In that same time, the Finance sector lost 3.72%, while the S&P 500 lost 0.62%.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. In that report, analysts expect Ares Capital to post earnings of $0.43 per share. This would mark a year-over-year decline of 18.87%. Our most recent consensus estimate is calling for quarterly revenue of $466.61 million, up 1.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.77 per share and revenue of $1.89 billion. These totals would mark changes of +6.63% and +3.98%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Ares Capital is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Ares Capital is holding a Forward P/E ratio of 10.22. For comparison, its industry has an average Forward P/E of 9.47, 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 99, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Ares Capital (ARCC) Gains As Market Dips: What You Should Know
In the latest trading session, Ares Capital (ARCC - Free Report) closed at $18.24, marking a +0.94% move from the previous day. This move outpaced the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 0.11%.
Coming into today, shares of the private equity firm had lost 9.06% in the past month. In that same time, the Finance sector lost 3.72%, while the S&P 500 lost 0.62%.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. In that report, analysts expect Ares Capital to post earnings of $0.43 per share. This would mark a year-over-year decline of 18.87%. Our most recent consensus estimate is calling for quarterly revenue of $466.61 million, up 1.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.77 per share and revenue of $1.89 billion. These totals would mark changes of +6.63% and +3.98%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Ares Capital is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Ares Capital is holding a Forward P/E ratio of 10.22. For comparison, its industry has an average Forward P/E of 9.47, 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 99, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.