The Relative Strength (RS) Rating for Ares Capital climbed into a higher percentile Friday, as it got a lift from 68 to 75. This is encouraging news.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's unique RS Rating tracks technical performance by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
Over 100 years of market history reveals that the top-performing stocks tend to have an RS Rating of over 80 as they launch their biggest climbs. See if Ares Capital can continue to show renewed price strength and clear that threshold.
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Ares Capital is trying to complete a flat base with a 20.05 buy point according to a weekly MarketSmith chart On the daily chart, it is trying to find traction out of a handle from a cup with handle pattern. See if the stock can break out in volume at least 40% above average.
ARCC Earnings
Ares Capital reported 26% earnings growth last quarter. Revenue rose 32%. The next earnings release is due on or around Oct. 24.
The company earns the No. 29 rank among its peers in the Finance-Investment Management industry group. Capital Southwest and ArrowMark Financial are also among the group's highest-rated stocks.
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