The latest trading session saw Ares Capital (ARCC) ending at $20.40, denoting a +1.54% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.13%. At the same time, the Dow lost 1.33%, and the tech-heavy Nasdaq lost 0.13%.

The the stock of private equity firm has fallen by 7.63% in the past month, lagging the Finance sector's loss of 4.51% and the S&P 500's loss of 6.3%.

The upcoming earnings release of Ares Capital will be of great interest to investors. The company's earnings report is expected on April 29, 2025. It is anticipated that the company will report an EPS of $0.54, marking an 8.47% fall compared to the same quarter of the previous 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 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.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Ares Capital. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% lower. At present, Ares Capital boasts a Zacks Rank of #4 (Sell).

From a valuation perspective, Ares Capital is currently exchanging hands at a Forward P/E ratio of 9.2. This signifies a premium in comparison to the average Forward P/E of 7.91 for its industry.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 176, finds itself in the bottom 30% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Ares Capital Corporation (ARCC) : Free Stock Analysis Report

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

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