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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 $18.25, moving -1.99% from the previous trading session. This change lagged the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Coming into today, shares of the private equity firm had gained 4.67% in the past month. In that same time, the Finance sector gained 3.67%, while the S&P 500 gained 7.71%.
Investors will be hoping for strength from Ares Capital as it approaches its next earnings release, which 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $631.63 million, up 43.55% from the year-ago period.
ARCC's full-year Zacks Consensus Estimates are calling for earnings of $2.38 per share and revenue of $2.58 billion. These results would represent year-over-year changes of +17.82% and +23.02%, respectively.
It is also important to note the recent changes to analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 0.95% higher within the past month. Ares Capital is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 7.82 right now. For comparison, its industry has an average Forward P/E of 7.09, 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 group has a Zacks Industry Rank of 17, putting it in the top 7% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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 $18.25, moving -1.99% from the previous trading session. This change lagged the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Coming into today, shares of the private equity firm had gained 4.67% in the past month. In that same time, the Finance sector gained 3.67%, while the S&P 500 gained 7.71%.
Investors will be hoping for strength from Ares Capital as it approaches its next earnings release, which 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $631.63 million, up 43.55% from the year-ago period.
ARCC's full-year Zacks Consensus Estimates are calling for earnings of $2.38 per share and revenue of $2.58 billion. These results would represent year-over-year changes of +17.82% and +23.02%, respectively.
It is also important to note the recent changes to analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 0.95% higher within the past month. Ares Capital is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 7.82 right now. For comparison, its industry has an average Forward P/E of 7.09, 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 group has a Zacks Industry Rank of 17, putting it in the top 7% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.