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Ares Capital (ARCC) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Ares Capital (ARCC - Free Report) closed at $19.20, marking a -0.88% move from the previous day. This change lagged the S&P 500's 0.7% loss on the day. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 1.06%.
Prior to today's trading, shares of the private equity firm had lost 1.37% over the past month. This has was narrower than the Finance sector's loss of 1.75% and lagged the S&P 500's gain of 0.58% in that time.
Investors will be hoping for strength from Ares Capital as it approaches its next earnings release. The company is expected to report EPS of $0.58, up 16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $655.14 million, up 22% from the year-ago period.
ARCC's full-year Zacks Consensus Estimates are calling for earnings of $2.34 per share and revenue of $2.58 billion. These results would represent year-over-year changes of +15.84% and +23%, respectively.
It is also important to note the recent changes to analyst estimates for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. Ares Capital is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 8.29 right now. This valuation marks a premium compared to its industry's average Forward P/E of 7.2.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 23, which puts 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) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Ares Capital (ARCC - Free Report) closed at $19.20, marking a -0.88% move from the previous day. This change lagged the S&P 500's 0.7% loss on the day. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 1.06%.
Prior to today's trading, shares of the private equity firm had lost 1.37% over the past month. This has was narrower than the Finance sector's loss of 1.75% and lagged the S&P 500's gain of 0.58% in that time.
Investors will be hoping for strength from Ares Capital as it approaches its next earnings release. The company is expected to report EPS of $0.58, up 16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $655.14 million, up 22% from the year-ago period.
ARCC's full-year Zacks Consensus Estimates are calling for earnings of $2.34 per share and revenue of $2.58 billion. These results would represent year-over-year changes of +15.84% and +23%, respectively.
It is also important to note the recent changes to analyst estimates for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. Ares Capital is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 8.29 right now. This valuation marks a premium compared to its industry's average Forward P/E of 7.2.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 23, which puts 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.