Analyst Ratings for Ares Capital Corp. (ARCC)

Updated: 2017-07-28

An average rating of Overweight has been given to Ares Capital Corp. (NASDAQ:ARCC) by analysts covering the stock. Last month, ARCC received an average rating of Overweight.

Of the 14 analysts covering the stock, 9 gave it a buy rating, 1 issued an overweight rating, 4 gave a hold rating, 0 gave an underweight rating, and 0 gave a sell rating. Compared to three months ago, there has been an increase of 0 in the number of analysts with a positive outlook on the stock. During this time, the number of analysts bearish on the stock has increased by 0.

Many analysts weighed in on price targets for ARCC. The most optimistic analyst gave a price target of 19.5, implying potential capital gains of 18.76 percent. The most pessimistic analyst gave a price target of 15, which equates to a potential downside of -8.65 percent. One must be careful with overanalyzing price targets and ratings due to possible conflicts of interest among the analysts releasing them.

In the last 30 days, analysts have changed their quarterly earnings estimates downwards by an average of -1.35 percent. That number becomes -10 percent if we expand the time horizon to include the past 3 months instead of just one. Over the past 30 days, FY earnings estimates have also changed upwards by 0 percent. If we look at the last 90 days instead, we find a net average change of -8.46 percent in FY estimates.

People are often interested in whether analysts were united in the direction of their revisions. 0 analysts made positive revisions to their quarterly estimates over the past month, which can be compared to the 1 analysts that decreased their estimates. During this time, 0 analysts made positive revisions in their estimates for this fiscal year's earnings, while 1 analysts made negative revisions to their fiscal year's estimates.

The growth rate of ARCC's earnings is estimated by analysts to be 5.92 percent. People on Wall Street often look at a company's PEG ratio. A lower PEG ratio is favorable, as that can indicate whether the high price level of a stock is warranted by high growth. Wall Street investors typically prefer a PEG ratio to be smaller than 1, although it is frequently more appropriate to compare PEG ratios to the company's peers. The PEG ratio of ARCC is 2.03.

ARCC has a 52-week high of 17.87 and a 52-week low of 15.01. Currently the stock is 9.39 percent higher than its low, and 8.11 percent lower than its 52-week high. ARCC has a price/earnings ratio of 11.99. Investors typically compare the P/E ratio to a company's peers in the industry. The ARCC value stock report compares ARCC to some of its peers using value stock charts. The market cap of ARCC is $7 billion. ARCC's next earnings release will be on 0000-00-00, which is days away.