Ares Capital (ARCC) Gains But Lags Market: What You Should Know

Ares Capital (ARCC) closed the most recent trading day at $19.91, moving +0.35% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.81%. Elsewhere, the Dow saw an upswing of 1.56%, while the tech-heavy Nasdaq appreciated by 2.06%.Coming into today, shares of the private equity firm had lost 7.46% in the past month. In that same time, the Finance sector lost 4.82%, while the S&P 500 lost 6.14%.The investment community will be closely monitoring the performance of Ares Capital in its forthcoming earnings report. The company is scheduled to release its earnings on April 29, 2025. The company is predicted to post an EPS of $0.54, indicating an 8.47% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $771.09 million, indicating a 10% increase compared to the same quarter of the previous year.For the full year, the Zacks Consensus Estimates project earnings of $2.18 per share and a revenue of $3.16 billion, demonstrating changes of -6.44% and +5.78%, respectively, from the preceding year.Investors might also notice recent changes to analyst estimates for Ares Capital. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.11% fall in the Zacks Consensus EPS estimate. Right now, Ares Capital possesses a Zacks Rank of #4 (Sell).Digging into valuation, Ares Capital currently has a Forward P/E ratio of 9.09. This signifies a premium in comparison to the average Forward P/E of 7.97 for its industry.The Financial - SBIC & Commercial Industry industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 183, positioning it in the bottom 27% of all 250+ industries.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.You can find more information on all of these metrics, and much more, on Zacks.com.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks