Ares Capital(US:ARCC) ZACKSยท2025-10-09 22:51Core Viewpoint - Ares Capital's stock has underperformed in recent trading sessions and is expected to report lower earnings and revenue in the upcoming financial results Group 1: Stock Performance - Ares Capital closed at $19.10, down 2.9% from the previous session, underperforming the S&P 500, which lost 0.28% [1] - The stock has decreased by 11.99% over the past month, while the Finance sector gained 0.87% and the S&P 500 increased by 4.03% [1] Group 2: Upcoming Earnings - Ares Capital is set to announce its earnings on October 28, 2025, with an expected EPS of $0.5, reflecting a 13.79% decline from the same quarter last year [2] - The consensus estimate for revenue is projected at $762.6 million, indicating a 1.6% decrease compared to the equivalent quarter last year [2] Group 3: Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of $2.01 per share and revenue of $3.01 billion, showing changes of -13.73% and +0.75% respectively from the previous year [3] Group 4: Analyst Estimates and Rankings - Recent changes in analyst estimates for Ares Capital are crucial as they reflect short-term business dynamics, with positive revisions indicating analysts' confidence [3][4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Ares Capital at 4 (Sell) [5] Group 5: Valuation Metrics - Ares Capital is trading with a Forward P/E ratio of 9.8, which is a premium compared to the industry average Forward P/E of 7.88 [6] - The Financial - SBIC & Commercial Industry, part of the Finance sector, has a Zacks Industry Rank of 194, placing it in the bottom 22% of over 250 industries [6]