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Ares Capital (ARCC) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest close session, Ares Capital (ARCC - Free Report) was down 2.59% at $19.53. This move lagged the S&P 500's daily loss of 0.63%. Meanwhile, the Dow lost 0.65%, and the Nasdaq, a tech-heavy index, lost 0.47%.

The stock of private equity firm has fallen by 4.93% in the past month, lagging the Finance sector's loss of 0.83% and the S&P 500's gain of 0.92%.

Investors will be eagerly watching for the performance of Ares Capital in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 28, 2025. The company is predicted to post an EPS of $0.5, indicating a 13.79% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $763.74 million, indicating a 1.45% decrease compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.01 per share and a revenue of $3.01 billion, signifying shifts of -13.73% and +0.83%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.09% fall in the Zacks Consensus EPS estimate. Ares Capital currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, Ares Capital is holding a Forward P/E ratio of 9.99. This indicates a premium in contrast to its industry's Forward P/E of 8.06.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 222, placing it within the bottom 11% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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