Ares Capital Stock Forecast - Understanding the Corporation's Growth

Ares Capital Corporation has consistently demonstrated a strong track record of growth, with a compound annual growth rate of 16% over the past five years.

The company's revenue has increased significantly, from $1.4 billion in 2015 to $2.8 billion in 2020.

Ares Capital's focus on middle-market lending has allowed it to capitalize on the growing demand for alternative credit solutions.

This strategy has enabled the company to expand its portfolio and increase its returns on investment.

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Analysts are surprisingly accurate with their stock forecasts, with an average materialization ratio of 86.67%.

The average time for these price targets to be met is a substantial 599.77 days.

The highest price target for ARCC is a notable $24.5, while the lowest is a relatively modest $22.

The average price target is a solid $26.05, a number to keep in mind when considering investment decisions.

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Ares Capital's financial projections indicate a steady growth in revenue, with a projected increase of 10% in 2023 compared to the previous year.

Their net income is expected to reach $1.2 billion by the end of 2024, a significant jump from $900 million in 2022. This growth is largely driven by the expansion of their asset management business.

Ares Capital's management team has a proven track record of delivering strong financial results, with a focus on sustainability and long-term growth. Their disciplined approach to investing has yielded impressive returns for shareholders.

Their financial projections also highlight a significant reduction in debt, with a target of reducing leverage to 2.5x by the end of 2025. This will further improve their financial flexibility and ability to pursue new investment opportunities.

The forecast analysis for Ares Capital Corporation (ARCC) stock is a mixed bag. Our data indicates that the asset price has been in an uptrend since 2004-Oct-05.

The 14-day forecast is a slight decline of -0.08%, but the 3-month forecast shows a potential increase of 3.78%. This suggests that the stock may be volatile in the short term.

Here's a breakdown of the forecasted price changes:

The long-term forecast is more promising, with a potential increase of 35.16% over the next 5 years. However, the 1-year forecast shows a decline of -4.93%, which may indicate a bear market trend.

Ares Capital Corporation's stock price has been in an uptrend since 2004, with a current price of $23.15 as of February 26, 2025.

This uptrend suggests a rising tendency in the market segment.

Our data indicates that the asset price has been in an uptrend since October 5, 2004.

The 14-day forecast for Ares Capital Corporation is a decrease of -0.08%.

The 3-month forecast is an increase of 3.78%.

The 6-month forecast is a decrease of -0.92%.

The 1-year forecast is a decrease of -4.93%.

The 5-year forecast is an increase of 35.16%.

Here's a summary of the forecasts:

According to our prediction system, the future price of the asset is predicted at $21.531, which is a decrease of -6.99% after a year.

This means that if you invested $100 now, your current investment may be worth $93.01 on February 26, 2026.

Forecast analysis can be a complex task, but let's break it down with some concrete facts. Over the next 52 weeks, Ares Capital has historically risen by 12.1% on average based on the past 20 years of stock performance.

There's a 50% historical accuracy rate, with Ares Capital rising higher in 10 of those 20 years over the subsequent 52-week period. This means that there's a decent chance of the stock performing well in the future.

The current Ares Capital share price is $23.15, which is a key figure to keep in mind. The Score for ARCC is 42, which is 16% below its historic median score of 50, indicating higher risk than normal.

Here's a quick summary of the historical performance of Ares Capital:

Ares Capital's valuation and growth prospects are closely tied to its ability to originate and invest in high-yielding loans and other financial assets.

The company has a strong track record of generating returns on its investment portfolio, with a net return on average invested assets of 13.5% in 2020.

Ares Capital's growth strategy focuses on expanding its origination capabilities and investing in new markets, such as middle market lending and private equity.

The company's financial performance has been consistently strong, with revenue growth of 20% in 2020 and a net income margin of 55.6%.

Will Ares Capital stock price grow? The ARCC stock price can go up from 23.150 USD to 24.257 USD in one year, indicating a possible increase in value.

Analysts are optimistic about the stock's potential, with an average rating of "Buy" from 7 stock analysts. This suggests that the stock is likely to outperform the market over the next twelve months.

The analysts' average stock forecasts have a materialization ratio of 86.67%, indicating that their predictions are often accurate. However, it's worth noting that the average time for these price targets to be met is 599.77 days, which can be a long time to wait.

Here's a breakdown of the analysts' price targets:

The most recent stock forecast was given by KENNETH LEE from RBC on 07-Feb-2025, with a value of $0.82 (3.54%). The first documented stock forecast was on 31-Oct-2016.

EPS growth is also an important factor to consider. For the years 2024, 2025, and 2026, the projected EPS growth is as follows:

Keep in mind that EPS growth can be a volatile metric, and actual results may differ from projections.

Ares Capital has risen higher in 10 of those 20 years over the subsequent 52-week period, corresponding to a historical accuracy of 50%.

This means that half the time, Ares Capital's price increase has been sustained over the short term.

However, this also suggests that the stock's price is not always a reliable indicator of its future performance.

Ares Capital's historical accuracy is just one factor to consider when evaluating its valuation.

Historical accuracy is a good starting point, but it's essential to consider other factors as well.

In the case of Ares Capital, its historical accuracy is not a guarantee of future success.

For example, Ares Capital has risen higher in 10 of those 20 years, but what about the other 10 years?

It's possible that the stock's price may have been overvalued in those instances.

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Ares Capital, a leading global alternative investment manager, has a rich history that dates back to 1997. The company was founded by Michael Arougheti and Bennett Rosenthal.

In its early days, Ares Capital focused on investing in small to medium-sized businesses, providing them with the necessary capital to grow and expand. Ares Capital's first fund was launched in 2004, with $1.1 billion in committed capital.

The company's growth was rapid, and by 2010, Ares Capital had expanded its portfolio to include over 150 companies across various industries. Ares Capital's success can be attributed to its experienced team, which has a deep understanding of the alternative investment market.

Ares Capital's history is marked by its ability to adapt to changing market conditions, allowing the company to navigate through economic downturns and emerge stronger.

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