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

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Ares Capital (ARCC - Free Report) closed the most recent trading day at $21.31, moving -4.44% from the previous trading session. This change lagged the S&P 500's 0.47% gain on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.94%.

Coming into today, shares of the private equity firm had lost 0.49% in the past month. In that same time, the Finance sector gained 2.42%, while the S&P 500 gained 2.32%.

Analysts and investors alike will be keeping a close eye on the performance of Ares Capital in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.5, showcasing a 13.79% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $764.06 million, indicating a 1.41% downward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.01 per share and a revenue of $3.02 billion, representing changes of -13.73% and +0.85%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Ares Capital possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 11.1 right now. This denotes a premium relative to the industry average Forward P/E of 8.69.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 23% echelons of all 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.

To follow ARCC in the coming trading sessions, be sure to utilize Zacks.com.


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