Ares Capital (ARCC) Stock Falls Amid Market Uptick: What Investors Need to Know

In the latest trading session, Ares Capital (ARCC) closed at $20.94, marking a -2.88% move from the previous day. This move lagged the S&P 500's daily gain of 0.44%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 0.7%. The private equity firm's stock has dropped by 3.41% in the past month, falling short of the Finance sector's gain of 3.79% and the S&P 500's gain of 4.03%.Investors will be eagerly watching for the performance of Ares Capital in its upcoming earnings disclosure. On that day, Ares Capital is projected to report earnings of $0.5 per share, which would represent a year-over-year decline of 13.79%. Simultaneously, our latest consensus estimate expects the revenue to be $764.06 million, showing a 1.41% drop compared to the year-ago quarter. ARCC's full-year Zacks Consensus Estimates are calling for earnings of $2.01 per share and revenue of $3.02 billion. These results would represent year-over-year changes of -13.73% and +0.85%, respectively. It's also important for investors to be aware of any recent modifications to analyst estimates for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Ares Capital possesses a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that Ares Capital has a Forward P/E ratio of 10.73 right now. This represents a premium compared to its industry average Forward P/E of 8.59. The Financial - SBIC & Commercial Industry industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 187, positioning it in the bottom 25% of all 250+ industries. 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. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ares Capital Corporation (ARCC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks