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Ares Capital (ARCC) Stock Sinks As Market Gains: What You Should Know
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Ares Capital (ARCC - Free Report) closed at $17.94 in the latest trading session, marking a -0.55% move from the prior day. This move lagged the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq lost 2.19%.
Coming into today, shares of the private equity firm had gained 2.09% in the past month. In that same time, the Finance sector lost 4.8%, while the S&P 500 gained 3.13%.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. This is expected to be April 25, 2023. On that day, Ares Capital is projected to report earnings of $0.59 per share, which would represent year-over-year growth of 43.9%. Our most recent consensus estimate is calling for quarterly revenue of $631.63 million, up 43.55% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.36 per share and revenue of $2.58 billion. These totals would mark changes of +16.83% and +23.02%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Ares Capital. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 7.64 right now. For comparison, its industry has an average Forward P/E of 6.95, 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 13, which puts it in the top 6% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Ares Capital (ARCC) Stock Sinks As Market Gains: What You Should Know
Ares Capital (ARCC - Free Report) closed at $17.94 in the latest trading session, marking a -0.55% move from the prior day. This move lagged the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq lost 2.19%.
Coming into today, shares of the private equity firm had gained 2.09% in the past month. In that same time, the Finance sector lost 4.8%, while the S&P 500 gained 3.13%.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. This is expected to be April 25, 2023. On that day, Ares Capital is projected to report earnings of $0.59 per share, which would represent year-over-year growth of 43.9%. Our most recent consensus estimate is calling for quarterly revenue of $631.63 million, up 43.55% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.36 per share and revenue of $2.58 billion. These totals would mark changes of +16.83% and +23.02%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Ares Capital. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 7.64 right now. For comparison, its industry has an average Forward P/E of 6.95, 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 13, which puts it in the top 6% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.