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Ares Capital (ARCC) Advances While Market Declines: Some Information for Investors

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The most recent trading session ended with Ares Capital (ARCC - Free Report) standing at $20.67, reflecting a +0.44% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 0.31% for the day. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq lost 1.09%.

Shares of the private equity firm have depreciated by 3.61% over the course of the past month, underperforming the Finance sector's loss of 1.77% and the S&P 500's gain of 2.73%.

Market participants will be closely following the financial results 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 full year, the Zacks Consensus Estimates project earnings of $2.34 per share and a revenue of $2.87 billion, demonstrating changes of -1.27% and +9.98%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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. Within the past 30 days, our consensus EPS projection 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 8.8 right now. This valuation marks a premium compared to its industry's average Forward P/E of 8.14.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 151, finds itself in the bottom 41% echelons 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.

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

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