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Ares Capital (ARCC) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Ares Capital (ARCC - Free Report) closed the most recent trading day at $19.38, moving -2.15% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.45% for the day. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.78%.
Shares of the private equity firm witnessed a gain of 0.81% over the previous month, beating the performance of the Finance sector with its loss of 2.1%, and the S&P 500's loss of 1.99%.
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 $0.48, showcasing a 4% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $780.31 million, showing a 0.22% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.91 per share and a revenue of $3.1 billion, signifying shifts of -4.98% and +1.7%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Ares Capital. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Ares Capital presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Ares Capital is currently trading at a Forward P/E ratio of 10.39. This expresses a premium compared to the average Forward P/E of 8.03 of its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% of all 250+ industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Ares Capital (ARCC) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Ares Capital (ARCC - Free Report) closed the most recent trading day at $19.38, moving -2.15% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.45% for the day. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.78%.
Shares of the private equity firm witnessed a gain of 0.81% over the previous month, beating the performance of the Finance sector with its loss of 2.1%, and the S&P 500's loss of 1.99%.
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 $0.48, showcasing a 4% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $780.31 million, showing a 0.22% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.91 per share and a revenue of $3.1 billion, signifying shifts of -4.98% and +1.7%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Ares Capital. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Ares Capital presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Ares Capital is currently trading at a Forward P/E ratio of 10.39. This expresses a premium compared to the average Forward P/E of 8.03 of its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% of all 250+ industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.