Back to top

Image: Bigstock

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

Read MoreHide Full Article

Ares Capital (ARCC - Free Report) closed the most recent trading day at $18.79, moving +2.12% from the previous trading session. This change outpaced the S&P 500's 1.21% loss on the day. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq lost 2.6%.

Prior to today's trading, shares of the private equity firm had lost 3.92% lagged the Finance sector's loss of 1.78% and the S&P 500's loss of 0.03%.

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 27, 2026. The company's upcoming EPS is projected at $0.48, signifying a 4.00% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $780.31 million, indicating a 0.22% downward movement from the same quarter last year.

ARCC's full-year Zacks Consensus Estimates are calling for earnings of $1.91 per share and revenue of $3.1 billion. These results would represent year-over-year changes of -4.98% and +1.7%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 9.65. This valuation marks a premium compared to its industry average Forward P/E of 7.11.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 36% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Published in