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Ares Capital (ARCC) Stock Moves -0.18%: What You Should Know

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Ares Capital (ARCC - Free Report) closed the most recent trading day at $22.08, moving -0.18% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.54%. Elsewhere, the Dow saw a downswing of 0.53%, while the tech-heavy Nasdaq depreciated by 0.66%.

Shares of the private equity firm have appreciated by 2.69% over the course of the past month, outperforming the Finance sector's gain of 0.08% and the S&P 500's gain of 1.5%.

Market participants will be closely following the financial results of Ares Capital in its upcoming release. The company is forecasted to report an EPS of $0.57, showcasing a 9.52% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $784.96 million, indicating a 11.03% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.36 per share and a revenue of $3.02 billion, signifying shifts of -0.42% and +15.38%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.12% lower. As of now, Ares Capital holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 9.39 right now. This represents a premium compared to its industry's average Forward P/E of 8.16.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 53, placing it within the top 22% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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