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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 the most recent trading day at $18.79, moving -0.05% from the previous trading session. This change lagged the S&P 500's 1.23% gain on the day. At the same time, the Dow added 0.84%, and the tech-heavy Nasdaq lost 2.24%.
Coming into today, shares of the private equity firm had lost 1.16% in the past month. In that same time, the Finance sector gained 4.74%, while the S&P 500 gained 4.67%.
Ares Capital will be looking to display strength as it nears its next earnings release. In that report, analysts expect Ares Capital to post earnings of $0.57 per share. This would mark year-over-year growth of 9.62%. Our most recent consensus estimate is calling for quarterly revenue 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.
Investors should also note any recent changes to analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 8.13. This represents a premium compared to its industry's average Forward P/E of 7.18.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% 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) Stock Sinks As Market Gains: What You Should Know
Ares Capital (ARCC - Free Report) closed the most recent trading day at $18.79, moving -0.05% from the previous trading session. This change lagged the S&P 500's 1.23% gain on the day. At the same time, the Dow added 0.84%, and the tech-heavy Nasdaq lost 2.24%.
Coming into today, shares of the private equity firm had lost 1.16% in the past month. In that same time, the Finance sector gained 4.74%, while the S&P 500 gained 4.67%.
Ares Capital will be looking to display strength as it nears its next earnings release. In that report, analysts expect Ares Capital to post earnings of $0.57 per share. This would mark year-over-year growth of 9.62%. Our most recent consensus estimate is calling for quarterly revenue 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.
Investors should also note any recent changes to analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 8.13. This represents a premium compared to its industry's average Forward P/E of 7.18.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% 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.