In the most recent trading session, Ares Capital (ARCC) closed at $22.29, indicating a +0.59% shift from the previous trading day.
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When a commercial aircraft encounters turbulence, a flight attendant will tell all passengers to return to their seats and buckle their seat belts. Some investors think a similar approach is appropriate when the stock market hits a rough patch.
Recently, Zacks.com users have been paying close attention to Ares Capital (ARCC). This makes it worthwhile to examine what the stock has in store.
Ares Capital offers a generous 9% dividend yield and has become more attractive after a recent sell-off, presenting a solid total return outlook. As a leading BDC with a market cap of $15 billion, ARCC employs a mixed strategy, balancing low-risk senior secured debt with higher-risk investments. ARCC's portfolio includes 57% first lien senior secured debt, 11% second lien debt, and 10% preferred equity.
The technicals are overall net bullish, especially for the near term as Ares Capital's stock has rebounded and the EMAs and indicators look promising. Most recent earnings are unconvincing, as EPS declines and weakening investment performance per share show a shaky business. Meanwhile, the P/B ratio has shown multiyear expansion and is at above average levels, signalling overvaluation relative to the fundamentals.
In the latest trading session, Ares Capital (ARCC) closed at $22.31, marking a +1.18% move from the previous day.
ARCC shares decline 6% in a month. Let us find out whether its rising investment commitments and diverse investment portfolio make it a lucrative bet.
Worried about stagflation? These dividend machines could protect your portfolio and pay you up to 10% yields. Stocks you'll want to own before inflation bites again. These picks crush SCHD and VYM in yield—and might just help you sleep better through market chaos.