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

In the latest trading session, Ares Capital (ARCC) closed at $20.13, marking a -1.37% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.34% for the day. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%. The private equity firm's shares have seen a decrease of 8.56% over the last month, not keeping up with the Finance sector's gain of 1.52% and the S&P 500's gain of 3.54%.Investors will be eagerly watching for the performance of Ares Capital in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.5, signifying a 13.79% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $764.06 million, reflecting a 1.41% fall from the equivalent quarter last year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.01 per share and revenue of $3.02 billion, indicating changes of -13.73% and +0.85%, respectively, compared to the previous year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Ares Capital is carrying a Zacks Rank of #4 (Sell). From a valuation perspective, Ares Capital is currently exchanging hands at a Forward P/E ratio of 10.16. This indicates a premium in contrast to its industry's Forward P/E of 7.93. The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 168, this industry ranks in the bottom 32% of all industries, numbering over 250. 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. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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