Ares Capital (ARCC) Advances But Underperforms Market: Key Facts

Ares Capital (ARCC) closed the most recent trading day at $21.75, moving +1.02% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 1.1%. Elsewhere, the Dow saw an upswing of 0.91%, while the tech-heavy Nasdaq appreciated by 1.35%.The the stock of private equity firm has fallen by 2.14% in the past month, leading the Finance sector's loss of 4.4% and undershooting the S&P 500's gain of 0.22%.The upcoming earnings release of Ares Capital will be of great interest to investors. The company is predicted to post an EPS of $0.57, indicating a 9.52% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $784.96 million, up 11.03% from the year-ago period.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.36 per share and a revenue of $3.02 billion, indicating changes of -0.42% and +15.38%, respectively, from the former 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.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. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. Ares Capital is currently a Zacks Rank #3 (Hold).With respect to valuation, Ares Capital is currently being traded at a Forward P/E ratio of 9.14. This denotes a premium relative to the industry's average Forward P/E of 8.08.The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 64, this industry ranks in the top 26% of all industries, numbering over 250.The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ares Capital Corporation (ARCC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks