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Ares Capital (ARCC) Dips More Than Broader Markets: What You Should Know
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Ares Capital (ARCC - Free Report) closed the most recent trading day at $18.96, moving -0.84% from the previous trading session. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.06%.
Coming into today, shares of the private equity firm had gained 7.54% in the past month. In that same time, the Finance sector lost 3.17%, while the S&P 500 lost 1.89%.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. This is expected to be July 26, 2022. 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 $467.37 million, up 1.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.77 per share and revenue of $1.9 billion, which would represent changes of +6.63% and +4.32%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Ares Capital. 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ares Capital currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 10.79 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.75.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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) Dips More Than Broader Markets: What You Should Know
Ares Capital (ARCC - Free Report) closed the most recent trading day at $18.96, moving -0.84% from the previous trading session. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.06%.
Coming into today, shares of the private equity firm had gained 7.54% in the past month. In that same time, the Finance sector lost 3.17%, while the S&P 500 lost 1.89%.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. This is expected to be July 26, 2022. 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 $467.37 million, up 1.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.77 per share and revenue of $1.9 billion, which would represent changes of +6.63% and +4.32%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Ares Capital. 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ares Capital currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 10.79 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.75.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.