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.

ARCC was given price targets by several analysts. The most optimistic price target was 19.5, implying a possible profit of 18.76 percent. The most pessimistic price target was 15, which equates to a potential downside of -8.65 percent. Many analysts are not unbiased in their coverage of stocks, including price targets and stock ratings, so care must be taken in interpreting numbers released by them.

Analysts have revised their earnings estimates downwards for this quarter, by about -1.35 percent on average, compared to last month. This can be compared with the average change in earnings estimates over the past 3 months, which is -10 percent. Meanwhile, fiscal year estimates have been revised upwards by 0 percent, compared to last month. If we look at the last 90 days instead, we find a net average change of -8.46 percent in FY estimates.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. Over the past month, 0 analysts increased their quarterly estimates, 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. It's possible to gain additional insight about growth valuation of a company by looking at the PEG ratio. Investors like to see smaller values for the PEG ratio, 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, though it could be better to see where the ratio stands relative to peers in the industry. The PEG ratio of ARCC is 2.03.

ARCC has traded between a high of 17.87 and a low of 15.01 over the past year. Today's price is 9.39 percent above the 52-week low, and 8.11 percent below the 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 will post this quarters earnings in days, on 0000-00-00.