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Why Ares Capital (ARCC) Dipped More Than Broader Market Today

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Ares Capital (ARCC - Free Report) closed the most recent trading day at $19.10, moving -2.9% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.28%. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 0.08%.

The stock of private equity firm has fallen by 11.99% in the past month, lagging the Finance sector's gain of 0.87% and the S&P 500's gain of 4.03%.

Market participants will be closely following the financial results of Ares Capital in its upcoming release. The company plans to announce its earnings on October 28, 2025. The company is expected to report EPS of $0.5, down 13.79% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $762.6 million, reflecting a 1.6% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.01 per share and revenue of $3.01 billion, indicating changes of -13.73% and +0.75%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% downward. Ares Capital currently has a Zacks Rank of #4 (Sell).

In the context of valuation, Ares Capital is at present trading with a Forward P/E ratio of 9.8. This represents a premium compared to its industry average Forward P/E of 7.88.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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