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Ares Capital (ARCC) Flat As Market Gains: What You Should Know
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Ares Capital (ARCC - Free Report) closed at $19.05 in the latest trading session, marking no change from the prior day. This move lagged the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq lost 8.94%.
Heading into today, shares of the private equity firm had gained 3.59% over the past month, lagging the Finance sector's gain of 5.12% and the S&P 500's gain of 5.41% in that time.
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 $0.57 per share, which would represent year-over-year growth of 9.62%. Meanwhile, our latest consensus estimate is calling for revenue of $623.16 million, up 30.1% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.31 per share and revenue of $2.51 billion, which would represent changes of +14.36% and +19.61%, respectively, from the prior year.
Investors should also note any 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Ares Capital currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Ares Capital is currently trading at a Forward P/E ratio of 8.24. Its industry sports an average Forward P/E of 7.08, 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 group has a Zacks Industry Rank of 34, putting it in the top 14% 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.
View the Zacks #1 Rank List
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Ares Capital (ARCC) Flat As Market Gains: What You Should Know
Ares Capital (ARCC - Free Report) closed at $19.05 in the latest trading session, marking no change from the prior day. This move lagged the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq lost 8.94%.
Heading into today, shares of the private equity firm had gained 3.59% over the past month, lagging the Finance sector's gain of 5.12% and the S&P 500's gain of 5.41% in that time.
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 $0.57 per share, which would represent year-over-year growth of 9.62%. Meanwhile, our latest consensus estimate is calling for revenue of $623.16 million, up 30.1% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.31 per share and revenue of $2.51 billion, which would represent changes of +14.36% and +19.61%, respectively, from the prior year.
Investors should also note any 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Ares Capital currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Ares Capital is currently trading at a Forward P/E ratio of 8.24. Its industry sports an average Forward P/E of 7.08, 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 group has a Zacks Industry Rank of 34, putting it in the top 14% 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.