In the latest market close, Ares Capital (ARCC) reached $23.43, with a +0.21% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.29%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.5%.
The private equity firm's stock has climbed by 6.56% in the past month, exceeding the Finance sector's gain of 4.05% and the S&P 500's gain of 2.52%.
Market participants will be closely following the financial results of Ares Capital in its upcoming release. The company plans to announce its earnings on February 5, 2025. The company's upcoming EPS is projected at $0.57, signifying a 9.52% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $784.96 million, up 11.03% from the prior-year quarter.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Ares Capital presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, Ares Capital is holding a Forward P/E ratio of 10.56. Its industry sports an average Forward P/E of 9.17, so one might conclude that Ares Capital is trading at a premium comparatively.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Ares Capital Corporation (ARCC) : Free Stock Analysis Report
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