Ares Capital (ARCC) Laps the Stock Market: Here's Why

Ares Capital (ARCC) closed the most recent trading day at $22.31, moving +1.18% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.01%, and the technology-centric Nasdaq increased by 0.46%.Shares of the private equity firm have depreciated by 5.04% over the course of the past month, underperforming the Finance sector's loss of 0.19% and the S&P 500's loss of 3.59%.Investors will be eagerly watching for the performance of Ares Capital in its upcoming earnings disclosure. In that report, analysts expect Ares Capital to post earnings of $0.54 per share. This would mark a year-over-year decline of 8.47%. In the meantime, our current consensus estimate forecasts the revenue to be $771.09 million, indicating a 10% growth compared to the corresponding quarter of the prior year.For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.18 per share and a revenue of $3.16 billion, representing changes of -6.44% and +5.78%, respectively, from the prior year.It's also important for investors to be aware of any recent modifications to analyst estimates for Ares Capital. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% lower. Ares Capital is currently a Zacks Rank #3 (Hold).Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 10.1 right now. Its industry sports an average Forward P/E of 8.81, so one might conclude that Ares Capital is trading at a premium comparatively.The Financial - SBIC & Commercial Industry industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 134, placing it within the bottom 47% of over 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.Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks