In the latest trading session, Ares Capital (ARCC) closed at $18.75, marking a -0.69% move from the previous day. This change lagged the S&P 500's daily loss of 0.61%. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq gained 10.45%.
Prior to today's trading, shares of the private equity firm had gained 4.66% over the past month. This has outpaced the Finance sector's loss of 2.27% and the S&P 500's gain of 1.05% in that time.
Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. In that report, analysts expect Ares Capital to post earnings of $0.57 per share. This would mark year-over-year growth of 9.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $623.16 million, up 30.1% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.31 per share and revenue of $2.51 billion. These totals would mark changes of +14.36% and +19.61%, respectively, from last year.
Any recent changes to analyst estimates for Ares Capital should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about 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.
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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. Ares Capital is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Ares Capital is currently trading at a Forward P/E ratio of 8.17. Its industry sports an average Forward P/E of 6.92, so we 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 36, which puts it in the top 15% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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