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# Ares Capital: The Pros And Cons After Q2 FY24 Results (Archive)
- URL: https://www.huntingalphas.com/ares-capital-the-pros-and-cons-after-q2-fy24-results-archive/
- Published: 2024-08-06T09:05:00.000Z
- Updated: 2026-02-27T12:57:21.000Z
- Description: ARCC’s deal activity remains robust, but slowing growth, peaking yields and average valuation warrant neutrality.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, ARCC, Financials

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- As the signs indicated last quarter, investment activity has been strong. However, on a run-rate basis, I believe it is slowing down in Q3 FY24.
- As expected, Ares Capital's yields seem to be peaking. Yields on incremental deals signed in July 2024 have been 40bps lower than company average levels.
- The chances of a rate cut have dramatically increased in recent days. Ares Capital, with its higher floating rate debt exposure, is well positioned to benefit.
- Valuation multiples are near the long term average, making it harder to take a directional view on the stock.
- Relative technicals vs S&P500 suggest a neutral outlook as the ratio prices are resting on top of monthly support, but in the vicinity of major 12-monthly resistance.

Read the full article [here](https://seekingalpha.com/article/4710745-ares-capital-the-pros-and-cons-after-q2-fy24-results?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*