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Ares Capital (ARCC) Gains But Lags Market: What You Should Know
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Ares Capital (ARCC - Free Report) closed the most recent trading day at $19.40, moving +1.04% from the previous trading session. This move lagged the S&P 500's daily gain of 1.83%. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.09%.
Coming into today, shares of the private equity firm had lost 4.76% in the past month. In that same time, the Finance sector lost 4%, while the S&P 500 lost 5.51%.
Investors will be hoping for strength from Ares Capital as it approaches its next earnings release. On that day, Ares Capital is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 4.26%. Our most recent consensus estimate is calling for quarterly revenue of $511.53 million, up 15.73% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.93 per share and revenue of $1.96 billion. These totals would mark changes of +16.27% and +7.93%, respectively, from last year.
Investors might also notice 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, 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 has moved 1.94% higher. Ares Capital is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 9.95 right now. Its industry sports an average Forward P/E of 9.3, so we one might conclude that Ares Capital is trading at a premium comparatively.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% 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) Gains But Lags Market: What You Should Know
Ares Capital (ARCC - Free Report) closed the most recent trading day at $19.40, moving +1.04% from the previous trading session. This move lagged the S&P 500's daily gain of 1.83%. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.09%.
Coming into today, shares of the private equity firm had lost 4.76% in the past month. In that same time, the Finance sector lost 4%, while the S&P 500 lost 5.51%.
Investors will be hoping for strength from Ares Capital as it approaches its next earnings release. On that day, Ares Capital is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 4.26%. Our most recent consensus estimate is calling for quarterly revenue of $511.53 million, up 15.73% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.93 per share and revenue of $1.96 billion. These totals would mark changes of +16.27% and +7.93%, respectively, from last year.
Investors might also notice 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, 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 has moved 1.94% higher. Ares Capital is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 9.95 right now. Its industry sports an average Forward P/E of 9.3, so we one might conclude that Ares Capital is trading at a premium comparatively.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% 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.