The latest trading session saw Ares Capital (ARCC) ending at $22.23, denoting a -0.36% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 1.12%. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw a decrease of 2.04%.

The the stock of private equity firm has fallen by 3.63% in the past month, lagging the Finance sector's loss of 0.06% and the S&P 500's loss of 2.91%.

Analysts and investors alike will be keeping a close eye on the performance of Ares Capital in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.54, signifying an 8.47% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $771.09 million, indicating a 10% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.18 per share and revenue of $3.16 billion, which would represent changes of -6.44% and +5.78%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% decrease. Currently, Ares Capital is carrying a Zacks Rank of #3 (Hold).

Investors should also note Ares Capital's current valuation metrics, including its Forward P/E ratio of 10.22. This denotes a premium relative to the industry's average Forward P/E of 8.85.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 149, finds itself in the bottom 41% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.

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This article originally published on Zacks Investment Research (zacks.com).

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