Investment company Ares Management is Wednesday's pick for IBD 50 Growth Stocks To Watch as it forms a flat base and is near record highs.
Ares Management is a diversified alternative asset manager, engaged in direct lending, private equity, and investment in infrastructure and real estate. Ares was a recent IBD Stock Of The Day pick.
The investment company announced on March 4 that it launched a new lending and specialty finance company called Ansley Park Capital. Shares popped more than 2% that day.
Ares ranks a powerful third out of 118 stocks in the Finance-Investment Management group. The group ranks 98th out of the 197 industry groups covered by Investor's Business Daily.
Investment Stock In A Base
The investment stock gapped up 5.2% in heavy volume after Ares reported higher-than-expected adjusted fourth-quarter earnings and lower sales than estimates on Feb. 8. Shares reached an all-time high of 139.48 that day. Ares stock then formed a flat base with 139.48 as the buy point, according to MarketSurge pattern recognition.
Shares started to trade tightly and formed a bullish three-weeks-tight pattern on the weekly chart with a 137.47 entry. These formations are best for adding to a current position.
Further, Ares stock is back above its 21-day exponential moving average after testing it in the flat base.
Ares Management Profit Expected To Soar
The investment company's fourth-quarter earnings grew 39% over last year on 12% sales growth. Current quarter estimates show 33% expected earnings growth with sales climbing 22%, according to MarketSurge data on the weekly chart. Full-year 2024 profit growth of 90% is expected and 33% in 2025.
Mutual funds have been adding Ares stock, with 1,064 funds owning shares in December. That's up from 978 in September.
Ares Management holds a 97 IBD EPS Rating and a 94 Composite Rating.
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