Ares Management reported a 236% increase in earnings per share last quarter, on top of 104% and 252% EPS gains the prior two quarters. As a result, its stock has risen sharply, more than doubling in the last year and a half. On Wednesday, the IBD SmartSelect Composite Rating for Ares stock edged up from 94 to a near-perfect 96.
The new rating shows Ares stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. Market research shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
Ares Stock Rises Above Cup-With-Handle Buy Point
Ares stock rose from a 53.15 low in mid-June 2022 to close at 111.15 Wednesday, rising above a cup with handle base's 110.73 entry. The rise came in about average volume, which is less than ideal. CAN SLIM investors look for stocks to break out in heavy trade at least 40% above average.
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Among its other ratings Los Angeles-based Ares Management has a superb 98 Earnings Per Share Rating out of 99. Reflecting its strong fundamentals, Ares has a B SMR Rating (sales + profit margins + return on equity) on an A-to-E scale.
Ares stock has a C Accumulation/Distribution Rating, showing that about as many big funds bought shares as sold them over the past 13 weeks. However, the number of funds holding ARES stock shot up from 784 last December to 957 in September, the latest quarter data is available for.
Mixed Results Last Quarter
Ares provides investment management services to institutions and high-net-worth individuals.
The company reported mixed results last quarter. Earnings soared 236% to 30 cents per share in Q3, but revenue dipped 16% to $671.3 million. The revenue drop may have been an outlier though because its sales grew 82% the prior quarter, up from 14% the quarter before that.
Ares stock holds the No. 3 rank among its peers in the 116-stock Finance-Investment Management industry group. Blackstone is the top-ranked stock in the group. Small-cap Blue Owl Capital is No. 2.
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