Ares Management is Thursday's pick for IBD 50 Growth Stocks To Watch with shares of the alternative asset manager setting up in a flat base as earnings loom. This leading investment company has gained 12% year to date vs. the S&P's 5%.
Ares Management provides credit to private borrowers as an alternative to banks or the public debt markets. Its other business units include private equity, real estate, insurance solutions and acquisition services.
Ares Management serves large pension funds, insurance companies, banks, sovereign wealth funds and university endowments. Ares Management was featured in The New America column as a leader in the large-cap alternative asset manager group.
The investment company reported $418.8 billion assets under management at the end of its fourth quarter. It ranks third in Investor's Business Daily's Finance-Investment Management industry group, according to IBD Stock Checkup.
Ares Stock In A Base Awaiting Next Move
Ares stock is trading sideways in a third-stage flat base with a 139.48 buy point, according to MarketSurge pattern recognition.
The buy point coincides with its all-time high reached on Feb. 8, following the company's fourth-quarter earnings report. Ares stock retreated and closed in the middle of the day's range, and started the new base.
Ares stock is testing its 50-day moving average where it is seeking support. Shares also found a line of resistance around 137. Its relative strength line has been modestly improving since the April 2 low.
Beats On Earnings; New Results Coming
Ares Management beat fourth-quarter adjusted earnings estimates and topped sales views on Feb. 8. Profits grew 39% to 86 cents a share vs. 62 cents in the prior year's quarter. This follows three robust quarters of profit growth in 2023 after four declining quarters in 2022.
Quarterly sales grew to $1.054 billion, or 12% over the prior year's period.
FactSet projects Ares will report earnings of 92 cents a share, or 30% growth, in the first quarter. Sales of $749.5 million are expected, representing 15% growth, over last year's quarter.
Analysts forecast full-year 2024 profit will explode 90% to $4.59 a share, with a 34% increase in 2025. Ares Management is due to report first-quarter results on May 2. The stock holds a score of 97 out a best-possible 99 in both its IBD Composite and Earnings Per Share Ratings.
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