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Ares Capital (ARCC) Stock Sinks As Market Gains: What You Should Know

Ares Capital (ARCC) closed at $19.06 in the latest trading session, marking a -0.1% move from the prior day. This change lagged the S&P 500's daily gain of 0.24%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.73%.

Prior to today's trading, shares of the private equity firm had gained 3.58% over the past month. This has outpaced the Finance sector's gain of 1.36% and the S&P 500's gain of 3.56% in that time.

Wall Street will be looking for positivity from Ares Capital as it approaches its next earnings report date. In that report, analysts expect Ares Capital to post earnings of $0.57 per share. This would mark year-over-year growth of 9.62%. Our most recent consensus estimate is calling for quarterly revenue of $623.16 million, up 30.1% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.31 per share and revenue of $2.51 billion, which would represent changes of +14.36% and +19.61%, respectively, from the prior year.

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Investors might also notice recent changes to analyst estimates for Ares Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. Ares Capital is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Ares Capital currently has a Forward P/E ratio of 8.26. This represents a premium compared to its industry's average Forward P/E of 7.04.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Ares Capital Corporation (ARCC) : Free Stock Analysis Report

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Zacks Investment Research