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Ares Capital (ARCC) Gains As Market Dips: What You Should Know
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Ares Capital (ARCC - Free Report) closed the most recent trading day at $19.49, moving +0.21% from the previous trading session. This change outpaced the S&P 500's 0.16% loss on the day. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq added 0.11%.
Heading into today, shares of the private equity firm had gained 0.36% over the past month, outpacing the Finance sector's loss of 2.06% and the S&P 500's loss of 1.25% in that time.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. In that report, analysts expect Ares Capital to post earnings of $0.58 per share. This would mark year-over-year growth of 16%. Our most recent consensus estimate is calling for quarterly revenue of $655.14 million, up 22% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.34 per share and revenue of $2.58 billion, which would represent changes of +15.84% and +23%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.62% higher. Ares Capital currently has a Zacks Rank of #3 (Hold).
Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 8.33. This valuation marks a premium compared to its industry's average Forward P/E of 7.22.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Ares Capital (ARCC) Gains As Market Dips: What You Should Know
Ares Capital (ARCC - Free Report) closed the most recent trading day at $19.49, moving +0.21% from the previous trading session. This change outpaced the S&P 500's 0.16% loss on the day. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq added 0.11%.
Heading into today, shares of the private equity firm had gained 0.36% over the past month, outpacing the Finance sector's loss of 2.06% and the S&P 500's loss of 1.25% in that time.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. In that report, analysts expect Ares Capital to post earnings of $0.58 per share. This would mark year-over-year growth of 16%. Our most recent consensus estimate is calling for quarterly revenue of $655.14 million, up 22% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.34 per share and revenue of $2.58 billion, which would represent changes of +15.84% and +23%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.62% higher. Ares Capital currently has a Zacks Rank of #3 (Hold).
Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 8.33. This valuation marks a premium compared to its industry's average Forward P/E of 7.22.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.