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Ares Capital (ARCC) Stock Moves -0.68%: What You Should Know

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Ares Capital (ARCC - Free Report) closed at $20.39 in the latest trading session, marking a -0.68% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.95%. Meanwhile, the Dow lost 1.09%, and the Nasdaq, a tech-heavy index, lost 0.84%.

Shares of the private equity firm have depreciated by 0.96% over the course of the past month, outperforming the Finance sector's loss of 1.88% and lagging the S&P 500's gain of 1.78%.

The investment community will be closely monitoring the performance of Ares Capital in its forthcoming earnings report. The company is scheduled to release its earnings on May 1, 2024. The company is expected to report EPS of $0.58, up 3.57% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $700.81 million, reflecting a 13.4% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.34 per share and a revenue of $2.84 billion, indicating changes of -1.27% and +8.59%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.62% higher. At present, Ares Capital boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Ares Capital is at present trading with a Forward P/E ratio of 8.79. This signifies a premium in comparison to the average Forward P/E of 7.77 for its industry.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 185, this industry ranks in the bottom 27% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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