Ares Capital (ARCC) ended the recent trading session at $22.10, demonstrating a +0.55% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.16%. Meanwhile, the Dow gained 0.86%, and the Nasdaq, a tech-heavy index, lost 0.38%.
Prior to today's trading, shares of the private equity firm had gained 1.34% over the past month. This has outpaced the Finance sector's loss of 5.04% and the S&P 500's loss of 2.2% in that time.
Market participants will be closely following the financial results of Ares Capital in its upcoming release. The company plans to announce its earnings on February 5, 2025. The company is predicted to post an EPS of $0.57, indicating a 9.52% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $784.96 million, up 11.03% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ares Capital. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Ares Capital is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Ares Capital is holding a Forward P/E ratio of 9.93. This expresses a premium compared to the average Forward P/E of 8.89 of its industry.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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