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Investors Business Daily
Investors Business Daily
Business
KIMBERLEY KOENIG

Investors Get Two Chances To Buy This Financial Stock

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.

Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.

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