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In the latest market close, Ares Capital (ARCC) reached $20.92, with a -1.78% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 2.95%. Elsewhere, the Dow lost 2.59%, while the tech-heavy Nasdaq lost 3.56%.
The the stock of private equity firm has fallen by 2.43% in the past month, lagging the Finance sector's loss of 0.68% and the S&P 500's gain of 3.15%.
The upcoming earnings release of Ares Capital will be of great interest to investors. 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, the latest consensus estimate predicts the revenue to be $784.96 million, indicating a 11.03% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.36 per share and revenue of $3.02 billion, indicating changes of -0.42% and +15.38%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.12% lower. Ares Capital currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 9.04 right now. This indicates a premium in contrast to its industry's Forward P/E of 8.07.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.