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Ares Capital (ARCC) Outpaces Stock Market Gains: What You Should Know
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Ares Capital (ARCC - Free Report) closed at $17.83 in the latest trading session, marking a +1.65% move from the prior day. This change outpaced the S&P 500's 0.17% gain on the day. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.67%.
Coming into today, shares of the private equity firm had lost 9.21% in the past month. In that same time, the Finance sector lost 8.6%, while the S&P 500 gained 0.25%.
Investors will be hoping for strength from Ares Capital as it approaches its next earnings release. The company is expected to report EPS of $0.59, up 43.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $631.63 million, up 43.55% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.36 per share and revenue of $2.58 billion, which would represent changes of +16.83% and +23.02%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Ares Capital. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 remained stagnant. Ares Capital is currently a Zacks Rank #2 (Buy).
Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 7.43. This valuation marks a premium compared to its industry's average Forward P/E of 7.07.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% 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) Outpaces Stock Market Gains: What You Should Know
Ares Capital (ARCC - Free Report) closed at $17.83 in the latest trading session, marking a +1.65% move from the prior day. This change outpaced the S&P 500's 0.17% gain on the day. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.67%.
Coming into today, shares of the private equity firm had lost 9.21% in the past month. In that same time, the Finance sector lost 8.6%, while the S&P 500 gained 0.25%.
Investors will be hoping for strength from Ares Capital as it approaches its next earnings release. The company is expected to report EPS of $0.59, up 43.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $631.63 million, up 43.55% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.36 per share and revenue of $2.58 billion, which would represent changes of +16.83% and +23.02%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Ares Capital. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 remained stagnant. Ares Capital is currently a Zacks Rank #2 (Buy).
Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 7.43. This valuation marks a premium compared to its industry's average Forward P/E of 7.07.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% 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.