In the latest trading session, Ares Capital (ARCC) closed at $21.90, marking a -0.21% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.43%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.9%.
The private equity firm's shares have seen a decrease of 0.72% over the last month, surpassing the Finance sector's loss of 5.69% and the S&P 500's loss of 1.98%.
The investment community will be closely monitoring the performance of Ares Capital in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.57, reflecting a 9.52% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $784.96 million, indicating a 11.03% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.36 per share and revenue of $3.02 billion. These totals would mark changes of -0.42% and +15.38%, respectively, from last year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. Ares Capital currently has a Zacks Rank of #3 (Hold).
Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 9.31. This valuation marks a premium compared to its industry's average Forward P/E of 8.19.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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