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 highest price target was 19.5, implying potential capital gains of 18.76 percent. The minimum price target given was 15, which equates to a potential downside of -8.65 percent. It is advisable to not rely only on price targets or ratings, as these can be biased for some stocks.

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. Expanding the time horizon to 3 months, the average change in fiscal year estimates becomes -8.46 percent.

Another thing investors often look at is the level of agreement among analysts' revisions. 0 analysts made positive revisions to their quarterly estimates over the past month, while 1 analysts revised their estimates downwards. During this time, 0 analysts made positive revisions in their estimates for this fiscal year's earnings, compared to 1 analysts that revised their FY estimates downwards.

The growth rate of ARCC's earnings is estimated by analysts to be 5.92 percent. Another measure frequently examined by investors is the PEG ratio. A lower PEG ratio is favorable, because people typically see that as an indicator of higher growth relative to stock price. PEG ratios below 1 are often considered desirable, although it is frequently more appropriate to compare PEG ratios to the company's peers. The PEG ratio of ARCC is 2.03.

In the trailing 52-weeks, ARCC hit 17.87 at the highest peak, while it's lowest trading point was 15.01. The current market price is above the trailing year's low by 9.39 percent, and 8.11 percent lower than its 52-week high. ARCC has a P/E 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 will post this quarters earnings in days, on 0000-00-00.