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Ares Capital (ARCC) Outpaces Stock Market Gains: What You Should Know
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Ares Capital (ARCC - Free Report) closed the most recent trading day at $19.33, moving +0.31% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.07%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 0.01%.
Prior to today's trading, shares of the private equity firm had lost 0.05% over the past month. This has lagged the Finance sector's gain of 1.7% and the S&P 500's gain of 0.38% in that time.
Ares Capital will be looking to display strength as it nears its next earnings release. On that day, Ares Capital is projected to report earnings of $0.58 per share, which would represent 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.
Any recent changes to analyst estimates for Ares Capital should also be noted by investors. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ares Capital is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 8.25 right now. For comparison, its industry has an average Forward P/E of 7.33, which means Ares Capital is trading at a premium to the group.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Ares Capital (ARCC) Outpaces Stock Market Gains: What You Should Know
Ares Capital (ARCC - Free Report) closed the most recent trading day at $19.33, moving +0.31% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.07%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 0.01%.
Prior to today's trading, shares of the private equity firm had lost 0.05% over the past month. This has lagged the Finance sector's gain of 1.7% and the S&P 500's gain of 0.38% in that time.
Ares Capital will be looking to display strength as it nears its next earnings release. On that day, Ares Capital is projected to report earnings of $0.58 per share, which would represent 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.
Any recent changes to analyst estimates for Ares Capital should also be noted by investors. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ares Capital is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 8.25 right now. For comparison, its industry has an average Forward P/E of 7.33, which means Ares Capital is trading at a premium to the group.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.