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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 at $18.02 in the latest trading session, marking a -0.83% move from the prior day. This change lagged the S&P 500's 0.77% loss on the day. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 2.23%.
Heading into today, shares of the private equity firm had lost 2.68% over the past month, lagging the Finance sector's gain of 2% and the S&P 500's gain of 4.66% in that time.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. The company is expected to report EPS of $0.57, up 9.62% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $623.26 million, up 30.12% from the year-ago period.
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 +19.68%, 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 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Ares Capital is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Ares Capital is holding a Forward P/E ratio of 7.86. This valuation marks a premium compared to its industry's average Forward P/E of 7.09.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% 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.
To follow ARCC in the coming trading sessions, be sure to utilize Zacks.com.
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Ares Capital (ARCC) Dips More Than Broader Markets: What You Should Know
Ares Capital (ARCC - Free Report) closed at $18.02 in the latest trading session, marking a -0.83% move from the prior day. This change lagged the S&P 500's 0.77% loss on the day. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 2.23%.
Heading into today, shares of the private equity firm had lost 2.68% over the past month, lagging the Finance sector's gain of 2% and the S&P 500's gain of 4.66% in that time.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. The company is expected to report EPS of $0.57, up 9.62% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $623.26 million, up 30.12% from the year-ago period.
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 +19.68%, 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 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Ares Capital is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Ares Capital is holding a Forward P/E ratio of 7.86. This valuation marks a premium compared to its industry's average Forward P/E of 7.09.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% 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.
To follow ARCC in the coming trading sessions, be sure to utilize Zacks.com.