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Ares Capital (ARCC) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Ares Capital (ARCC - Free Report) closed at $21.52, marking a -0.05% move from the previous day. This change lagged the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.35%.

Shares of the private equity firm witnessed a gain of 2.04% over the previous month, beating the performance of the Finance sector with its gain of 0.75% and underperforming the S&P 500's gain of 3.25%.

The investment community will be paying close attention to the earnings performance of Ares Capital in its upcoming release. The company is predicted to post an EPS of $0.58, indicating constancy compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $714.27 million, showing a 12.66% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.34 per share and a revenue of $2.87 billion, representing changes of -1.27% and +9.98%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% increase. Ares Capital is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 9.21 right now. This expresses a premium compared to the average Forward P/E of 8.32 of its industry.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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