Ares Capital (ARCC) Rises Yet Lags Behind Market: Some Facts Worth Knowing

The latest trading session saw Ares Capital (ARCC) ending at $23.18, denoting a +0.78% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 1%. Meanwhile, the Dow experienced a rise of 0.78%, and the technology-dominated Nasdaq saw an increase of 1.51%.The private equity firm's shares have seen an increase of 8.85% over the last month, surpassing the Finance sector's loss of 0.44% and the S&P 500's loss of 2.14%.The investment community will be paying close attention to the earnings performance of Ares Capital in its upcoming release. The company is slated to reveal its earnings on February 5, 2025. It is anticipated that the company will report an EPS of $0.57, marking a 9.52% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $784.96 million, showing a 11.03% escalation compared to the year-ago quarter.Any recent changes to analyst estimates for Ares Capital should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ares Capital currently has a Zacks Rank of #2 (Buy).From a valuation perspective, Ares Capital is currently exchanging hands at a Forward P/E ratio of 10.39. This valuation marks a premium compared to its industry's average Forward P/E of 9.09.The Financial - SBIC & Commercial Industry industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 34% of all 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.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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