Ares Capital (ARCC) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Company Performance - Ares Capital (ARCC) closed at $21.44, reflecting a -1.43% change from the previous day, underperforming the S&P 500's daily loss of 0.91% [1] - Over the past month, Ares Capital shares have decreased by 5.06%, slightly better than the Finance sector's loss of 5.01% and outperforming the S&P 500's loss of 7.38% [1] Upcoming Earnings - Ares Capital is expected to report earnings of$ 0.54 per share, indicating a year-over-year decline of 8.47%, with projected revenue of $771.09 million, up 10% from the prior-year quarter [2] - For the entire year, the Zacks Consensus Estimates forecast earnings of$ 2.19 per share and revenue of $3.16 billion, reflecting changes of -6.01% and +5.78% respectively compared to the previous year [3] Analyst Estimates and Valuation - Recent revisions to analyst estimates for Ares Capital are crucial as they reflect near-term business trends, with positive revisions indicating optimism about the company's outlook [3] - Ares Capital currently has a Forward P/E ratio of 9.95, which is a premium compared to the industry average Forward P/E of 8.88 [6] Industry Context - The Financial - SBIC & Commercial Industry, part of the Finance sector, holds a Zacks Industry Rank of 155, placing it in the bottom 39% of over 250 industries [6] - The Zacks Rank system, which evaluates stocks based on estimate changes, has a strong track record, with stocks rated 1 producing an average annual return of +25% since 1988 [5]