Ares Capital (ARCC) Gains As Market Dips: What You Should Know

In the latest close session, Ares Capital (ARCC) was up +1.11% at $18.19. This change outpaced the S&P 500's 0.05% loss on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.24%. Shares of the private equity firm have depreciated by 4.36% over the course of the past month, underperforming the Finance sector's gain of 2.3%, and the S&P 500's loss of 1.42%.The investment community will be closely monitoring the performance of Ares Capital in its forthcoming earnings report. The company is expected to report EPS of $0.47, down 6% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $776.52 million, indicating a 4.23% increase compared to the same quarter of the previous year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.91 per share and revenue of $3.14 billion, indicating changes of -4.98% and +2.98%, respectively, compared to the previous year. Investors might also notice recent changes to analyst estimates for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained stagnant within the past month. Ares Capital presently features a Zacks Rank of #3 (Hold). With respect to valuation, Ares Capital is currently being traded at a Forward P/E ratio of 9.43. This represents a premium compared to its industry average Forward P/E of 7.92. The Financial - SBIC & Commercial Industry industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 211, placing it within the bottom 14% of over 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. To follow ARCC in the coming trading sessions, be sure to utilize Zacks.com. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks