Ares Capital (ARCC) closed the latest trading day at $23.42, indicating a +1.04% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.53%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.25%.
Prior to today's trading, shares of the private equity firm had gained 5.89% over the past month. This has outpaced the Finance sector's gain of 4.18% and the S&P 500's gain of 1.24% in that time.
The investment community will be closely monitoring the performance of Ares Capital in its forthcoming earnings report. The company is scheduled to release its earnings on February 5, 2025. The company's upcoming EPS is projected at $0.57, signifying a 9.52% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $784.96 million, indicating a 11.03% upward movement from the same quarter last year.
Investors should also note any recent changes to analyst estimates for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has remained steady. As of now, Ares Capital holds a Zacks Rank of #2 (Buy).
Looking at valuation, Ares Capital is presently trading at a Forward P/E ratio of 10.47. This denotes a premium relative to the industry's average Forward P/E of 9.16.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 55, this industry ranks in the top 22% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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