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Ares Capital (ARCC) Laps the Stock Market: Here's Why
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In the latest close session, Ares Capital (ARCC - Free Report) was up +2.42% at $18.63. The stock's performance was ahead of the S&P 500's daily gain of 1.18%. Meanwhile, the Dow gained 0.66%, and the Nasdaq, a tech-heavy index, added 1.96%.
Prior to today's trading, shares of the private equity firm had gained 1.39% lagged the Finance sector's gain of 4.89% and the S&P 500's gain of 3.93%.
The investment community will be paying close attention to the earnings performance of Ares Capital in its upcoming release. The company is slated to reveal its earnings on April 28, 2026. It is anticipated that the company will report an EPS of $0.48, marking a 4% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $768.96 million, indicating a 5.05% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.93 per share and revenue of $3.12 billion, indicating changes of -3.98% and +2.33%, respectively, compared to the previous 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Ares Capital currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 9.43. This signifies a premium in comparison to the average Forward P/E of 7.86 for its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 217, positioning it in the bottom 12% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Ares Capital (ARCC) Laps the Stock Market: Here's Why
In the latest close session, Ares Capital (ARCC - Free Report) was up +2.42% at $18.63. The stock's performance was ahead of the S&P 500's daily gain of 1.18%. Meanwhile, the Dow gained 0.66%, and the Nasdaq, a tech-heavy index, added 1.96%.
Prior to today's trading, shares of the private equity firm had gained 1.39% lagged the Finance sector's gain of 4.89% and the S&P 500's gain of 3.93%.
The investment community will be paying close attention to the earnings performance of Ares Capital in its upcoming release. The company is slated to reveal its earnings on April 28, 2026. It is anticipated that the company will report an EPS of $0.48, marking a 4% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $768.96 million, indicating a 5.05% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.93 per share and revenue of $3.12 billion, indicating changes of -3.98% and +2.33%, respectively, compared to the previous 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Ares Capital currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Ares Capital currently has a Forward P/E ratio of 9.43. This signifies a premium in comparison to the average Forward P/E of 7.86 for its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 217, positioning it in the bottom 12% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.