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Ares Capital (ARCC) Ascends While Market Falls: Some Facts to Note

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Ares Capital (ARCC - Free Report) closed at $20.88 in the latest trading session, marking a +1.95% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.53%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1%.

Prior to today's trading, shares of the private equity firm had gained 1.69% outpaced the Finance sector's gain of 0.87% and lagged the S&P 500's gain of 2.06%.

Analysts and investors alike will be keeping a close eye on the performance of Ares Capital in its upcoming earnings disclosure. The company's earnings report is set to go public on February 4, 2026. The company is predicted to post an EPS of $0.5, indicating a 9.09% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $795.35 million, indicating a 4.79% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2 per share and revenue of $3.06 billion, which would represent changes of -14.16% and 0%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Ares Capital. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding 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).

Looking at valuation, Ares Capital is presently trading at a Forward P/E ratio of 10.48. This valuation marks a premium compared to its industry average Forward P/E of 8.68.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 180, this industry ranks in the bottom 27% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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